Enjoyed this video? Then subscribe to the channel right now, and let's dive deeper into two key terms on the income statement: Gross Margin and Operating Margin th-cam.com/video/VCMJzG1AaXA/w-d-xo.html
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Thank you for the kind words! Yeah, it makes a lot more sense if you have the picture right in front of you, and somebody talking you through it. That's how I build up almost all my videos. More cases studies in this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Great to hear that, Bahar! I hope you will find many useful videos on my channel. Here is a playlist with some of the key accounting-related videos that I made so far: th-cam.com/video/b93KBmcXanI/w-d-xo.html
Mate, your videos work so well for me. The examples at the start just help me learn, and I don't know how or why that is so effective. Context must be everything for me. Thanks.
Thank you for the kind words! So happy to hear that. Yeah, I love real world financial statements as well, that's where the real complexity (or simplicity) comes out. What I am trying to say: real life can be either far more complicated or far simpler than a textbook will make you believe. I have taken the same approach to discuss the balance sheet th-cam.com/video/eIjCaeNm-Vk/w-d-xo.html and the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html Maybe those videos are helpful for you as well! More in general, my finance case studies playlist could be good for you to browse through: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
@@TheFinanceStoryteller yes thank you, need these videos in my life right now. Currently studying for CFA 1 through my job. My main job is trading and portfolio mgmt so the financial reporting and analysis is brand new to me! Thanks for replying and best regards to you.
Hope you will have a lot of fun with it! Here's the link to my finance case studies playlist, where I cover a lot of the important concepts along the way: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html And here are my thoughts on how to get started with a financial analysis: th-cam.com/video/jG-oXx54qxE/w-d-xo.html
Hello - I have just discovered your Channel and watched this video. It is absolutely fantastic ! The amount of information provided is just right, the speed and clarity of delivery is just right, the length of the video is just right. Thank you very much for giving me one of the clearest explanations of the income statement. I will look forward to studying your other material. Best Regards,
Thank you so much for the kind words, Reza! Very happy to hear that. Yes, I have plenty of videos that could be of interest to you: deep dives into various aspects of the financial statements, case studies to get the big picture... Enjoy!!! And let me know what you think of them.
Thank you for the walkthrough, really informative. If you ever could, please make a video going through everything in an annual financial report. From start to bottom. Would like to see your insight as you go along reading the employees messages, the financial numbers, notes etc...
Thank you for the kind words! I have made a few videos about reading an annual report (both from the perspective of seeing the full picture th-cam.com/video/Kw-1nopchnA/w-d-xo.html , as well as individual key sections such as the MD&A th-cam.com/video/LD6YBBtpEcs/w-d-xo.html and the understanding of operating segments th-cam.com/video/8IDQtBn902Q/w-d-xo.html ).
As good as fk, I am trying to learn the financial statement from scratch for investment purposes. Most material like Textbook or MIT open-course doesn't have a solid example. They just throw me tons of undefined terms for me to decode. Truly appreciated Sir.
Hello Ivan! Yeah, let's start with real world financial statements, and "peel the onion" layer by layer to get to the core of what is happening. Here is my playlist of financial statement case studies of companies you may have heard of: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
I have no way to forecast the future for any company.... All I know is that Microsoft has done very well in the past few years, and continues to adapt, change and grow. If I had some cash lying around, I would buy shares in Microsoft, but sadly I am already fully invested. Fortunately, I have some biotech and software stocks in my portfolio that have done equally well as Microsoft. :-)
Hello Jake! In my view, the best example of other income for companies like Alphabet Inc (Google), Apple and Microsoft is the interest income that these companies generate on their portfolio of cash, cash equivalents and marketable securities. This is "non-operational" income, in other words income that does not come from a company's main business of selling products and services. See for example my balance sheet analysis for Alphabet Inc: th-cam.com/video/XKSOswE-_6c/w-d-xo.html
Thanks for sharing your videos! I just gave my brother a link to your financial statements playlists since he asked me about public company valuation. Do you have any plans to release any videos on how to build a financial model or how to do financial modeling overall?
That is great, Jeff! Thank you for spreading the word! If you are looking for a financial model to build a business plan, then I have a short video for you: th-cam.com/video/FC0ZODWFzpo/w-d-xo.html You could also use this model as a starting point for public company valuation, but then you'd need to use the flawed CAPM-based WACC to discount expected future values to present values th-cam.com/video/1O-DbtVueMw/w-d-xo.html Personally, I split my modest stock market investment portfolio 50/50 between ETFs and individual stocks th-cam.com/video/GBLNKbOgQ4w/w-d-xo.html I recommend reading "The Black Swan" and "Antifragile" by Nassim Taleb for a very different approach to investing (getting away from financial modeling of the inherently unpredictable future).
My pleasure, Luiz! Did you watch the related videos on the balance sheet th-cam.com/video/eIjCaeNm-Vk/w-d-xo.html and the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html as well?
Hello Maria! Yes, once you understand the basics, it is easy to follow. For more financial statement case studies, see this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Hello Lorean! My apologies, I should have explained that in the video. The percentages I calculated are relative to revenue. So for example gross margin % is the gross margin $ divided by the revenue $, in this case $82.9B divided by $125.8B = 66%. Hope that helps! If you need any further explanation, let me know, and I will be happy to help.
Hello sir I am a non accounting student and would like to know the two important information captured in the financial performance statement and financial position statement most useful to the users
Hello Sheenal! That is an excellent question. You will probably get different answers, when you ask different persons. My response is: Operating Margin, and Free Cash Flow. See my related video on business plan financials to understand the link between them: th-cam.com/video/FC0ZODWFzpo/w-d-xo.html
Dear Sir, I am given some figures as exercise. I feel like to ask 2/3 items please. I have net value of vehicles at year end, Balance at bank and depreciation. I think I should leave the 2 figures, Vehicule value and Bank balance for Balance sheet and depreciation as expense in Income statement. Am I right ? Heppy to know you online. You are great!
Hello Sunny! I think you are correct. See also my video on the relationship between income statement and balance sheet, that will clarify things for you! th-cam.com/video/wZdaVEX41WQ/w-d-xo.html
Hello Vincent! Download the Microsoft annual report, and take a look. On Microsoft's income statement, it says "for the year ended June 30" in the top left corner. A year equals 12 months, therefore their fiscal year starts in July and ends in June.
This was awesome! This motivated me to upload my own take on The Income Statement! 📈 Would love your feedback and support. Keep on inspiring and spreading the knowledge!🧠
Taxes are calculated on profit in the income statement, not on equity on the balance sheet. If profits are negative (in other words the company makes a loss) then a deferred tax asset situation could occur: th-cam.com/video/MvXAljQD4II/w-d-xo.html
Hello Elmar! Yes, I have used various locations in the house and various equipment over time to record the audio. More recent videos sound better. And there's always the option of switching off the sound and switching on the subtitles. ;-)
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Happy to help, Hema! Nice to hear you enjoyed it. More case studies (Apple, Tesla, etc) of the various financial statements in this playlist: th-cam.com/video/J_1F8GoLOI8/w-d-xo.html&pp=gAQBiAQB
Enjoyed this video? Then subscribe to the channel right now, and let's dive deeper into two key terms on the income statement: Gross Margin and Operating Margin th-cam.com/video/VCMJzG1AaXA/w-d-xo.html
th-cam.com/video/iMOPubmEaqI/w-d-xo.html
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Thank you for the kind words! Yeah, it makes a lot more sense if you have the picture right in front of you, and somebody talking you through it. That's how I build up almost all my videos. More cases studies in this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Sir, I am taking an accounting class for summer and found out your videos. Thanks for explaining these:)
Great to hear that, Bahar! I hope you will find many useful videos on my channel. Here is a playlist with some of the key accounting-related videos that I made so far: th-cam.com/video/b93KBmcXanI/w-d-xo.html
th-cam.com/video/iMOPubmEaqI/w-d-xo.html
Oh my goodness. The right video and it seems the right channel I have been looking for to educate myself.
Thank you, Elery! Great to hear that. Please subscribe, and share with friends!!! :-)
Mate, your videos work so well for me. The examples at the start just help me learn, and I don't know how or why that is so effective. Context must be everything for me. Thanks.
Thank you for the kind words! So happy to hear that. Yeah, I love real world financial statements as well, that's where the real complexity (or simplicity) comes out. What I am trying to say: real life can be either far more complicated or far simpler than a textbook will make you believe. I have taken the same approach to discuss the balance sheet th-cam.com/video/eIjCaeNm-Vk/w-d-xo.html and the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html Maybe those videos are helpful for you as well! More in general, my finance case studies playlist could be good for you to browse through: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
@@TheFinanceStoryteller yes thank you, need these videos in my life right now. Currently studying for CFA 1 through my job. My main job is trading and portfolio mgmt so the financial reporting and analysis is brand new to me! Thanks for replying and best regards to you.
Hope you will have a lot of fun with it! Here's the link to my finance case studies playlist, where I cover a lot of the important concepts along the way: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html And here are my thoughts on how to get started with a financial analysis: th-cam.com/video/jG-oXx54qxE/w-d-xo.html
@@TheFinanceStoryteller thank you bro that is very kind and helpful of you. Thanks for the videos you’re a good content creator.
Please spread the word!!! 😎
Hello - I have just discovered your Channel and watched this video. It is absolutely fantastic ! The amount of information provided is just right, the speed and clarity of delivery is just right, the length of the video is just right. Thank you very much for giving me one of the clearest explanations of the income statement. I will look forward to studying your other material. Best Regards,
Thank you so much for the kind words, Reza! Very happy to hear that. Yes, I have plenty of videos that could be of interest to you: deep dives into various aspects of the financial statements, case studies to get the big picture... Enjoy!!! And let me know what you think of them.
Thank you for the walkthrough, really informative.
If you ever could, please make a video going through everything in an annual financial report. From start to bottom. Would like to see your insight as you go along reading the employees messages, the financial numbers, notes etc...
Thank you for the kind words! I have made a few videos about reading an annual report (both from the perspective of seeing the full picture th-cam.com/video/Kw-1nopchnA/w-d-xo.html , as well as individual key sections such as the MD&A th-cam.com/video/LD6YBBtpEcs/w-d-xo.html and the understanding of operating segments th-cam.com/video/8IDQtBn902Q/w-d-xo.html ).
th-cam.com/video/iMOPubmEaqI/w-d-xo.html
YOU ARE AN ACCOUNTING ANGEL SENT FROM GOD...
Thank you for the kind words!!!
As good as fk, I am trying to learn the financial statement from scratch for investment purposes. Most material like Textbook or MIT open-course doesn't have a solid example. They just throw me tons of undefined terms for me to decode. Truly appreciated Sir.
Hello Ivan! Yeah, let's start with real world financial statements, and "peel the onion" layer by layer to get to the core of what is happening. Here is my playlist of financial statement case studies of companies you may have heard of: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Delighted! Well taught to analyse Microsoft. Can you analyse how long can Microsoft sustain this performance?
I have no way to forecast the future for any company.... All I know is that Microsoft has done very well in the past few years, and continues to adapt, change and grow. If I had some cash lying around, I would buy shares in Microsoft, but sadly I am already fully invested. Fortunately, I have some biotech and software stocks in my portfolio that have done equally well as Microsoft. :-)
Agree, beautiful overview!
@@konstancyja82 Thank you! I enjoyed researching the topic and putting the video together.
@@TheFinanceStoryteller whats a stock?
what would be a good example of other income? Something like property value increasing?
Hello Jake! In my view, the best example of other income for companies like Alphabet Inc (Google), Apple and Microsoft is the interest income that these companies generate on their portfolio of cash, cash equivalents and marketable securities. This is "non-operational" income, in other words income that does not come from a company's main business of selling products and services. See for example my balance sheet analysis for Alphabet Inc: th-cam.com/video/XKSOswE-_6c/w-d-xo.html
Excellent video. Well explained.
Great to hear that. :-)
Thanks for sharing your videos! I just gave my brother a link to your financial statements playlists since he asked me about public company valuation. Do you have any plans to release any videos on how to build a financial model or how to do financial modeling overall?
That is great, Jeff! Thank you for spreading the word! If you are looking for a financial model to build a business plan, then I have a short video for you: th-cam.com/video/FC0ZODWFzpo/w-d-xo.html You could also use this model as a starting point for public company valuation, but then you'd need to use the flawed CAPM-based WACC to discount expected future values to present values th-cam.com/video/1O-DbtVueMw/w-d-xo.html Personally, I split my modest stock market investment portfolio 50/50 between ETFs and individual stocks th-cam.com/video/GBLNKbOgQ4w/w-d-xo.html I recommend reading "The Black Swan" and "Antifragile" by Nassim Taleb for a very different approach to investing (getting away from financial modeling of the inherently unpredictable future).
irooooooonsssssss
Good video now I will become a millionaire
Easier said than done! ;-)
Thanks a lot for this rich content!
My pleasure, Luiz! Did you watch the related videos on the balance sheet th-cam.com/video/eIjCaeNm-Vk/w-d-xo.html and the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html as well?
Wow its so easy . Thanks sir
Hello Maria! Yes, once you understand the basics, it is easy to follow. For more financial statement case studies, see this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
@@TheFinanceStoryteller thank u sir
Awesome video sir!!! Thank you
Most welcome!
Love your videos!
Thank you, Tara! Nice to hear that!
Thank you for this .
My pleasure! More finance case studies of the financial statements of real world companies in this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Great explanations
Very happy to hear that, Aishah! You might like the related video on the balance sheet as well: th-cam.com/video/eIjCaeNm-Vk/w-d-xo.html
hi, thank you 4 the vid, how you obtain the percentage? i’m still lose ☹️
Hello Lorean! My apologies, I should have explained that in the video. The percentages I calculated are relative to revenue. So for example gross margin % is the gross margin $ divided by the revenue $, in this case $82.9B divided by $125.8B = 66%. Hope that helps! If you need any further explanation, let me know, and I will be happy to help.
Hello sir I am a non accounting student and would like to know the two important information captured in the financial performance statement and financial position statement most useful to the users
Hello Sheenal! That is an excellent question. You will probably get different answers, when you ask different persons. My response is: Operating Margin, and Free Cash Flow. See my related video on business plan financials to understand the link between them: th-cam.com/video/FC0ZODWFzpo/w-d-xo.html
CONSOLIDATED STATEMENT OF INCOME is also income statement ?
Yes! But for a group of a parent company and its subsidiaries combined, as if they were a single company: th-cam.com/video/DTFD912ZJQg/w-d-xo.html
Thank you sir
Happy to help! More case studies of the financial statements in this playlist: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Dear Sir, I am given some figures as exercise. I feel like to ask 2/3 items please. I have net value of vehicles at year end, Balance at bank and depreciation. I think I should leave the 2 figures, Vehicule value and Bank balance for Balance sheet and depreciation as expense in Income statement. Am I right ? Heppy to know you online. You are great!
Hello Sunny! I think you are correct. See also my video on the relationship between income statement and balance sheet, that will clarify things for you! th-cam.com/video/wZdaVEX41WQ/w-d-xo.html
Thank you ❣
You're welcome!
better than coursera , to be honest
That is a great compliment!!! Thank you. Hope you find many more helpful videos on this channel.
what is the meaning of basic & diluted in earning per share ?
That is the topic of this short related video: th-cam.com/video/TXjkQy5KJog/w-d-xo.html
At 2:45 how do you know the years started in July
Hello Vincent! Download the Microsoft annual report, and take a look. On Microsoft's income statement, it says "for the year ended June 30" in the top left corner. A year equals 12 months, therefore their fiscal year starts in July and ends in June.
Awesome video!. Thanks!
Glad you liked it, Pedro! You're welcome! I love putting these finance case studies together.
This was awesome! This motivated me to upload my own take on The Income Statement! 📈 Would love your feedback and support. Keep on inspiring and spreading the knowledge!🧠
If a company has negative shareholder equity, then does it have to pay tax?
Taxes are calculated on profit in the income statement, not on equity on the balance sheet. If profits are negative (in other words the company makes a loss) then a deferred tax asset situation could occur: th-cam.com/video/MvXAljQD4II/w-d-xo.html
Use bing for better results 😀
Yeah, I like a little irony in my videos once in a while! ;-)
the web search joke was lol lmao
I was shocked to see the Total Revenue of Microsoft... Until i saw the subtitle which says "in millions" 😅
Yeah, always check the unit of measurement in the subtitle!
What is other income?
Income that does not come from a company's main business, such as interest income and expense, and net recognized gains on investments.
Feel like was recorded in bathroom) Other then that THANK YOU !
Hello Elmar! Yes, I have used various locations in the house and various equipment over time to record the audio. More recent videos sound better. And there's always the option of switching off the sound and switching on the subtitles. ;-)
Ramalan,
4:00
What about it?
You are Greek right? 🤔😄
You correctly guessed the continent, Francisco. Dutch, actually....
@@TheFinanceStoryteller haha sorry for that, seemed like a greek accent. Spanish here btw 😙 congratulations on your videos!
@@franciscodasis4376 No worries! Thanks for the compliments. Please spread the word by telling friends and colleagues about the channel.
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Happy to help, Hema! Nice to hear you enjoyed it. More case studies (Apple, Tesla, etc) of the various financial statements in this playlist: th-cam.com/video/J_1F8GoLOI8/w-d-xo.html&pp=gAQBiAQB
thank you sir
Happy to help!