How To Read & Analyze The Balance Sheet Like a CFO | The Complete Guide To Balance Sheet Analysis

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00:00 Agenda
01:29 Breakdown of Balance Sheet
06:10 Cash
08:45 Accounts Receivable
11:10 Inventory
12:04 Other Assets
12:52 Accounts Payable
15:02 Accrued Expenses
15:36 Deferred Revenue
16:27 Long Term Debt
I walk you through both the accounting and the strategic analysis of the balance sheet; and explaining the risk-based approach in analyzing the balance sheet accounts.
Get My Balance Sheet Metrics Excel & PDF Summary (seen in this video):
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All views expressed on my channel are mine alone. Not intended as financial or professional advice.

[@TheFinancialController]

Hey guys - correction, the balance sheet date should say "As of Dec 31st" not "For the month ended Dec 31st", sorry for the error.

[@vinredhawk7294]

🙌

[@mahmoudalshami1557]

Do u have such course for Sr.accountant?

[@mayankvaid5454]

In finding day sales outstanding you have divided total receivable by total sales
Which i think is inappropriate because
Receivable also includes of some amounts which are older than 90 days
Which is some how can be imagined as bad debts for a movement.
Is it right or not?

[@deepakadhiraaijog7387]

Hi, also the EBIT was 325,000 and you mentioned 250,000.

[@memelogy737]

I have learnt more from you than 3 yrs at university studying accounting and finance. Keep the great work man your vids have helped me alot.

[@TheFinancialController]

Best thing I read all day

[@yt-nu4tm]

Vert true. Agreed

[@pranayakhadka3507]

Thank u sir...☺️☺️

[@jesseludenyo6436]

What!!? Which university is that?

[@rich3989]

The same thing for me

[@mzikazityelo6242]

Wow!!! You've explained the balance Sheet so clearly and simple. You made it so easy to understand

[@elliekay8616]

This helps me so much. I am a number thinker, which is hard when it comes to analyzing accounting. I focus on what numbers need to be where and making sure I balance, but I never take that other piece and apply comprehension to what I’m doing. This helps me SO much. Thank you.

[@zulfiqardurrani3483]

Great lecture,I am an accountant myself and a CPA aspirant..

[@vangelic.1591]

First ever video I've seen on TH-cam without a single dislike 👎, you're doing an outstanding job, thank you much 👏 🙏

[@jojojojo-pu1pt]

studied from your clips everyday has got me a good job. Thank you very much!

[@victoriaullrich2278]

I really appreciate you taking the time to make this video. I have been out of school for awhile, and I have forgotten how to analyze financial statements. This video was very helpful in helping me remember.

[@TheFinancialController]

Thanks Victoria

[@ramash95]

I'm a Ph.D student, and I don't have any experience with financial management and analysis. You video help me understand the basics of everything. Thank you for your time and hard work. Wish you all the best.

[@universalinformation572]

How did you complete Ph.D without knowing these basic concepts sir?

[@MrDesertFoxChannel]

I have been in the Finance for more than 21 years as Controller and i can say experience taught me that spelling and grammar is the basic skills you need to become a trusted one in Finance.

[@kevinwaycaster]

Are…

[@alejandroescoto6118]

This guy is a great teacher and explains things simly.

[@rotimiabraham7784]

I found this helpful after leaving graduate school for a number of years and now trying to set up a hospitality focused fund . I have to refresh myself in doing FA. Thank you .

[@HashBrown99Gaming]

Mate great video! Always good to hear from someone who works at a high financial position. That's where I aspire to be some day! Thanks again for sharing your knowledge :)

[@Prasad_Creations1]

This is the FIRST video I ever have seen, which PRACTICALLY gives THOROUGH knowledge about Balance sheet's interpretation! Thanks a lot sir!🙏🍫😊🙏 Lots of love from 🇮🇳Bharat (India)🇮🇳😊

[@usernamegobrr8851]

3 years of uni taught us how to make financial statements but never taught us how to analyze them. Eventhough it sounds like creating financial statements does justice to the analysis part, I never really knew how they're linked to other statements (like aging schedule) I learnt so much more after watching this video.

[@TheFinancialController]

Glad you enjoyed the video!

[@ShotokanShaun]

Thank you so much for posting this content. I always hoped to find a controller that would take me under their wing and train me; that hasnt happened yet. But I'm glad I found your channel until that time comes! Keep teaching us. We appreciate it.

[@TheFinancialController]

:) thanks for the kind words; keep on learning

[@borkobozickovic7241]

Your way of explaining is one of the best I've ever seen. Bravo!

[@TheFinancialController]

Thanks Borko!

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I really can learn anything on YT and google. What a time to be alive! ❤️

[@anamagdael8739]

Thank you for sharing, it's very helpful.🙏

[@alkerdham]

Simple & straight to the point. Many thanks

[@christine3081]

Many things you teach are so valuable and can’t be found anywhere else on TH-cam. Thanks! Subscribed!

[@TheFinancialController]

Welcome aboard!

[@simonkaleshu1193]

This is one of the best Analysis I have learnt today

[@hari4406]

Euqity is what you own, liability is what you owe, asset is what you have with you, which is what you owe + what you own.

[@casper14301]

I can't believe this is free; keep up the incredible work!

[@nonysannkosi452]

This is very helpful for my MBA Reporting and Analysis Course, bear in mind I have no accounting background!

[@TheFinancialController]

Glad it was helpful!

[@madelinerose9620]

this was just beautiful!!! i shed a tear watching this video . I learned more with you than what i learned in grad school.

[@TheFinancialController]

Thank you!

[@horacioumfurer1194]

Great explanation! it makes it so easy to understand how to read a balance sheet. Excellent work!

[@TheFinancialController]

Thank you!

[@gabrielguevara2823]

wow. fantastic job. well put together. i definitely have a better grasp of how to analyze a balance sheet! thank you so much!!

[@EvaWongWealthCoach]

Thank you for the presentation. Short and precise.

[@Mw2magnet]

great video learned alot

[@allansaflor4203]

Thank you for all the information you shared to us, this will help us to elevate our knowledge on how to analyzed financial statement.

[@TheFinancialController]

Great Allan

[@p.r.7776]

I enjoy your video very much. The content is practical and the way you present them is logical. I did not major in finance nor accounting and have been kinda jumping between finance and accounting roles, not out of my interest but just got pushed by “destiny”. Now I started to actually like the work. Hopefully I will eventually become as knowledgeable as you are.

[@TheFinancialController]

You will do great, I know it

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I am brand new to this world and I am so glad I found your channel.

[@abel39]

TH-camrs prove to be the best teachers, they are an asset. Some teachers (not all of them) are liability.

[@oladobe]

Nice video teacher. I'm not fluent in English but I'm improving my skills. Thanks for the explanation! A hug from Brazil!

[@_crazystacy]

This is SO GOOD for my study and work! Thank you so much!!

[@ditrenh]

This is a great, clear video! Thank you sir!

[@user-tu2oh6ug9n]

I can listen to you and learn all day. Ty

[@nandakumarpurakkat6522]

Thank you...crisp ..simple...to the point...Presentation..

[@mjkhalaf2452]

Great Videos, keep going.

[@yinyin7614]

Thanks for teaching me a lot. Keep watching your channel.

[@anshikachhabra8186]

Thanks for creating this video,relably it has given mkre than the mearnig i gained yet from education & courses. It has served an aspiration fullfillment relaxation.

[@TheFinancialController]

It's my pleasure

[@shilpapatnaik5434]

Just want to Thank you sooo much for the videos.I have almost followed all your videos.Helps me instantly to refresh my accounting knowledge with in very short time.Thanks a tonn

[@TheFinancialController]

Thanks for watching

[@shilpapatnaik5434]

Thank u for responding to my comment.i request if you can make a video on deferred revenue expense with example and journal entries.

[@thehoneydeev]

Your knowledge transfer is much appreciated- thank you! New subscriber

[@erm105]

I love your videos! You explain them extremely easy to understand, specially since my background is not in accounting. Currently going for my CPA certification, so I can go into accounting.

[@htfitness9205]

Thank you for the detail explanation.

[@shomak8410]

I've learned so much. Thank you so much for sharing your knowledge.

[@TheFinancialController]

You are so welcome!

[@mikedaponte8030]

Great detail. Highly recommend!

[@404TRUCKERTV]

bro, great video! I'm learning all this right now. I don't know professors ask like we have to remember all these formulas, when you use a cheat sheet in the real world.

[@TheFinancialController]

That’s right :)

[@AndreA-qp6in]

Great video! Please make more videos like this. Also, I would really appreciate if you could advice some advance learning material on how to analyze financials and how to value business and level 2, 3 investments.

[@charlottekoona5203]

Clear. Very useful. You’ve got a new subscriber😊

[@hermandatinnon5677]

Thank you for the breakdown this has been so helpful.

[@TheFinancialController]

Great :)

[@radhikak0109]

Great explanation and very useful. Thank you

[@rohitvautre3159]

Thank you so much for this video and making it easier for us to understand.

[@anooopmurali]

Great content and presentation 🔥

[@TheFinancialController]

Thanks Anoop

[@vikasmehrotra8304]

Pretty much straightforward without any jargon language and explain beautifully.

[@TheFinancialController]

Thanks Vikas

[@noredinilyas7130]

I like the way you are explaining the balan sheet its so amazing thank you so much ❤️❤️❤️🤛🏻

[@colinisawesome2]

You’re the best. Thank you for doing what you do

[@normwho7]

Thank you, learned a lot, nice & clean presentation & great visual spreafsheet

[@mumtazahmed8099]

Very helpful learning for the Management Executive's. Thank you.

[@paolagarcia6910]

So helpful! Thank you so much!

[@qww760]

You are a great instructor!

[@divinegavor4639]

Learned a lot from you. Thank you!

[@janaesaffold2531]

I always come back and watch this video, every time I learn something new new

[@nataliebaek7384]

thank you for the detailed explanation!

[@xx-kp2qp]

Amazing..!! thanks a lot 😊

[@user-jv2dz6jc5j]

very nicely done. Thank you

[@TheFinancialController]

Many thanks!

[@jasontsui2256]

Wow. This is indeed useful and inspiring. So to read and analyse the financial statements like a CFO is to be able to use financial ratios to analyse the numbers and make a meaning conclusion from it. I have been learning accounting for many years and learning financial ratios is not my favorite part. There are so many ratios out there and not easy to remember. Now I see it differently cos they are really very useful at work.

[@TheFinancialController]

Thanks brother. Glad you found it helpful

[@1rocknroy]

Thanks for the valuable perspective.

[@uminhtetoo]

Thank you so much for sharing.

[@natalia______8996]

Thank you very much for this easy explanation. I learn more watching this video than in my MBA from program

[@Ctizen_sK]

Thank you Sir, i keep on coming back to your vids.

[@TheFinancialController]

Glad you like them!

[@krishanmohansharma8306]

Thanks for uploading . Great help for me 👍

[@akmalhijaz3584]

It really help me during this audit period. Thanks!

[@TheFinancialController]

Glad to help

[@dosth2255]

The way you explain the topic is excellent. Thanks a lot.

[@TheFinancialController]

Thanks and welcome

[@krishanmohansharma8306]

Great explanation! Really to the point and. In Simpli the best 🙏👍

[@kalimhashmi5380]

Very well explained.

[@evansjuma3831]

Hi Bill, this is great presentation 👏. I would appreciate if you could please expound more on cash conversion cycle and how to balance AR and Inventory.
I would appreciate another deep dive on income statement items more so on the top down approach.
A big thank you 😊 🙏

[@TheFinancialController]

Will do! Thanks Evans

[@raveenathakur9693]

Wow man just wow .mind blowing

[@mihaipap7375]

Great video, thank you

[@user-qp5cx2bu5o]

Great work 👏, wow thank you so much

[@TheFinancialController]

You're welcome 😊

[@YAY11LLI]

Great stuff!

[@TheFinancialController]

Thanks!

[@FRANKWHITE1996]

Great content. Thanks for sharing.

[@FundamentalEconomics]

One of the best videos on Finance i have seen so far... Hope will learn a lot from you Dear Respected Sir

[@TheFinancialController]

Thank you 🙏

[@mrpaolo1990]

Thank you Bill, your knowledge is worth thousands of dollars/pounds or in other currencies, many thanks again!

[@TheFinancialController]

Thanks Pawel!

[@navjotsandhu539]

Superb analysis you have taught lot many things pertains to FS. Thanx for your efforts.

[@SoothingRythms]

Thank you for the great presentation. It is an impressive refresher for me as an Accountant.

[@TheFinancialController]

Thanks

[@inspiramind5445]

This is a great video. I will use it as part of my teachings which, I believe, will bring a lot of visitors to this video.
Thank you! 😊👍👍👍

[@TheFinancialController]

Great thanks 🙏

[@omerfarukylmaz2408]

It was amazing, I've appreciated that.

[@TheFinancialController]

Glad to hear that!

[@alexsonga4742]

This is amazing.Thanks Bill for sharing

[@TheFinancialController]

Thanks Alex!

[@ammie8937]

Thanks Bill, the video helps a lot, appreciated 😊

[@TheFinancialController]

My pleasure!

[@jerinanaiken7464]

Thank you
Short n to the point

[@christianpetersen1782]

Excellent 👏 thank you very much. Subbed!

[@adeladel4752]

Great and useful video, you have clarified something to me in 2 min, really appreciate
Keep posting such interesting stuff please
Good luck

[@TheFinancialController]

Thanks Adel!

[@mokh7782]

Amazing information 👌

[@MarcosLopez-cu6ui]

I declare you Master Finance Wizard! Keep the excellent content my friend👍

[@TheFinancialController]

Thanks brother

[@uyentruong1512]

Thank you for your informative video. It is very helpful.

[@sky_finance]

Informative session with practical examples... keep going

[@TheFinancialController]

Thank you, I will

[@RamJagtap]

Thanks a ton sir for your tremendous knowledge & skillsets which you have been sharing with us.
Really grateful to you & God bless you with abundance💫🙌

[@raghuveermaduvinakody379]

Stop calling anyone as sir / madam. Now atleast, come out of slavery mindset.

[@dianseptopramono7878]

Great explanation Mr. Bill, thank you very much. stay safe

[@TheFinancialController]

Thank you!