As someone who has done long term investing for years using fanancial statements, I must say this is the best video I've seen on how to learn this stuff, it's simple, short and effective. The other metrics I use as well is Return on Invested Capital (ROIC), and debt to equity ratio.
I would use my resume to highlight significant interest in the subject matter. For instance in the extra-curricular activities I could put subscribed to "Phil Town's Rule #1 investing" TH-cam channel. An MBA is actually supposed to be used to show significant interest in a particular subject area with case competitions and what not. You can develop this during your spare time
Like the clean concise delivery- we would all be better off if people watched this than cat videos- who knew. I’m an analyst and what is presented here is real helpful for so many people who are investing without any guidance-very good videos
you have to evaluate a company's like a bank would evaluate giving you a business loan because that's basically what you're doing you're giving the companies you invest in money to grow their business and you as the investor have to do your due diligence like a bank would do on you
nice that operating cash flow is separated from other cash flows but surprise that rate of return on assets is taken at the same level of rate of return on equity.
First of all , thank you very very much for taking some time out and explaining the things. It's very helpful for me in understanding the concepts. I d started working in current ratio , it's been consistently as low as 0.03 to 0.06 for banks. If you can explain me why , I would be very thankful to you. Regards
I think he was saying that very big, old companies can sustain that kind of current ratio. Banks are special because, in the U.S., they're insured by the FDIC. During the financial crisis, the U.S. Government proved to the world that some of these banks were "too big to fail." So I wonder if that insurance (both explicit and implied) is a part of the reason for such a low current ratio.
1.0 is bare minimum in that for every $1 of Current assets you are able to pay for every $1 in Current liabilities. You would have thing else in Current assets to profit from. 0.03 is terrible. Thats .03 cents of Ca to Cl and it means a percentage of Current liabilities cannot be covered quickly by Current assets. At least you're growing. Just not by very much if thats a year to year change.
Question, perhaps a stupid one, but would it make sense to divide the free cash flow (instead of net income) by total assets to see how much free cash flow a company can generate on its assets, since free cash flow is the actual cash going back to the owners?
Thank you for the video. Good points but why ask people to go and look at balance sheets, cash flow statements and do the math on their own? All that stuff is already calculated for you and available for free on websites like Morningstar.
It sounds like it's the money you get back for your investment. "Assets" seems to include all cash and equity. Am I saying that right? So if you give your friend your lawn mower (worth $300) and $100 cash for his lawn-care business, you're into the business $400. If he pays you dividends of $100/year, you're making 25% return on assets. Someone please correct me if I'm wrong.
Great video! Which ratios do you think are the most important ones when picking stocks? I've found this article here www.stockmetrix.net/blog/post/070318/5-most-accurate-financial-ratios?t=gauYT#17a Do you agree with what they say there?
As someone who has done long term investing for years using fanancial statements, I must say this is the best video I've seen on how to learn this stuff, it's simple, short and effective. The other metrics I use as well is Return on Invested Capital (ROIC), and debt to equity ratio.
I watch your videos all the time. You explained it much better than the graduate professors who were not really into teaching or explaining
Great lecture. Short, simple to the point. The length of the stream contain only such amount of information one can easily assimilate .
You are an encyclopedia. I took notes as much as I could , lots of technical words to look for . 😅
I'm glad that I took accounting course in grade 11, last year. Thank you Phil, I learnt a lot from you on how to look at a company!
This guy's alright. Coulda saved me that $90K I spent on an MBA
and would you put in your CV youtube video course? :D
I would use my resume to highlight significant interest in the subject matter. For instance in the extra-curricular activities I could put subscribed to "Phil Town's Rule #1 investing" TH-cam channel. An MBA is actually supposed to be used to show significant interest in a particular subject area with case competitions and what not. You can develop this during your spare time
dahitman55 did you land ceo job?
Most of the stuff I've learned in my degree could of been picked up from library books and TH-cam videos...Schools are scams
Randy Lee
It wasn’t always like that, but yes, I have to agree at this point in time.
It's my 1st year studying Business, and thanks to Phil I'm not struggling as before!! Thanks, you.
Like the clean concise delivery- we would all be better off if people watched this than cat videos- who knew. I’m an analyst and what is presented here is real helpful for so many people who are investing without any guidance-very good videos
What is the different between operating cash flow and net profit.. because u saya operating cash flow is how money the company make right?
Thank you so much sir. I have not seen such an exhaustive explanation ever.
This is very helpful. I owe you one Phil when you come to Kenya for Safari
I would love to visit Kenya for a Safari!
In exchange you can visit Uzbekistan for a Silk road trip
Could you recommend me some books about financial statement analysisis?
Phil seems like a good guy. Nice Presentation. -Thanks
You Sir are a awsome man sharing your wealth of knowledge.
I loveeee how you explain. Loved your videos. Helped me a whole lot. Thanks, Phil!
you have to evaluate a company's like a bank would evaluate giving you a business loan because that's basically what you're doing you're giving the companies you invest in money to grow their business and you as the investor have to do your due diligence like a bank would do on you
That’s a smart way to look at it .. how you trade stocks right now what website you use?
very well said, spot on
nice that operating cash flow is separated from other cash flows but surprise that rate of return on assets is taken at the same level of rate of return on equity.
Where can i find these 3 financial statements? ( Balance sheet, income statement and cash flow ?
Simple and straightforward! Great video
Great presentation, this is really good stuff, Thanks Phil
First of all , thank you very very much for taking some time out and explaining the things. It's very helpful for me in understanding the concepts. I d started working in current ratio , it's been consistently as low as 0.03 to 0.06 for banks. If you can explain me why , I would be very thankful to you. Regards
I think he was saying that very big, old companies can sustain that kind of current ratio. Banks are special because, in the U.S., they're insured by the FDIC. During the financial crisis, the U.S. Government proved to the world that some of these banks were "too big to fail." So I wonder if that insurance (both explicit and implied) is a part of the reason for such a low current ratio.
1.0 is bare minimum in that for every $1 of Current assets you are able to pay for every $1 in Current liabilities. You would have thing else in Current assets to profit from.
0.03 is terrible. Thats .03 cents of Ca to Cl and it means a percentage of Current liabilities cannot be covered quickly by Current assets.
At least you're growing. Just not by very much if thats a year to year change.
Great advice! Very well explained.
Thank you very much sir, really valuable information.
finally found a guy who speaks my language
Thanks for watching!
visual example would have been great
Question, perhaps a stupid one, but would it make sense to divide the free cash flow (instead of net income) by total assets to see how much free cash flow a company can generate on its assets, since free cash flow is the actual cash going back to the owners?
Amazing explanation. Really very very very very good explanation
Amazing piece of info...
Amazing. Thanks. What a great guy.
Thank you for sharing, it is very enlightful.
You explain everything clear and simple. Love this channel Phil, you’ve taught me a lot!
new subscriber, great video
Awesome stuff there. I am learning. Thank you Phil .
Great video. It rare to find a decent investing tips video on the internet these days.
Hello there, good information you provide us, thankyou for that. Would it be posible to download some statement and go through them , so we can see?
You can download the yourself Stefan
Excellent explanation thank you very much.
Thank you for the video. Good points but why ask people to go and look at balance sheets, cash flow statements and do the math on their own? All that stuff is already calculated for you and available for free on websites like Morningstar.
thanks for the video, it's help me a lot
Excellent video
thanks
SO AWESOME 👍
extremely useful
Great program, thanks
good video :)
well explained
Thank you very much!
I love this guy so much!!! but omg those nails caught my eye
Liquid gold. Thank you!
I plan on reading his book ...Anybody read it yet ?
thank you so much
Honestly after reading his book I made $11,000.00 off of stocks in 2017! His book is great
Cotey Speaks Finance Did you invest $1,100,000.00 that year?
helps that the stock market did ok too.
Охтеров Егор roflmao!!! Be nice
Where on a balance sheet can you find equipment purchased specifically that year?
@@itsmejeremy7 Look at the Income Statement, it should be listed as a depreciation expense
This video could benefit from some text and visuals
“Except we don’t want to see 1% we want to see thirty and a great company can do that”
(5:38)
explain the difference between earnings and revenue please. I thought earnings just calculates in the liabilities.
Eric Brenner earnings = total revenue - cost of revenue
Can you do a video of 30 companies that return at least 30 per year? Would be so helpful!
Best joke from my country - Latvia.
Our bank offer 0.03% per year, so 1% is huge 😅
Thank you!
Sir, pls can you shade more light on "return on assets" ?
It sounds like it's the money you get back for your investment. "Assets" seems to include all cash and equity. Am I saying that right? So if you give your friend your lawn mower (worth $300) and $100 cash for his lawn-care business, you're into the business $400. If he pays you dividends of $100/year, you're making 25% return on assets. Someone please correct me if I'm wrong.
Thanks Mr Phil. I think i am on a play now
tnx!
Sorry what's the Fourth one may I ask?
He is talking about free cash flow. www.investopedia.com/terms/f/freecashflow.asp
I wish you were my professor..
Thanks Phil for this video! I'm learning a lot and feeling empowered while investing.
He is awesome!
FedorT54 ooooo
W
Operating cash flow - Capex = owners cash flow
Dca might not give u maximum profit, but it takes zero energy to perform.
Great video! Which ratios do you think are the most important ones when picking stocks? I've found this article here www.stockmetrix.net/blog/post/070318/5-most-accurate-financial-ratios?t=gauYT#17a Do you agree with what they say there?
*Thank You*
Use more visuals
Found it I think.
Bryan Cranston can really do finance stuffs
am sorry but i dont like numbers
Great video. It rare to find a decent investing tips video on the internet these days.
Thank you so much
Thank you!
Thank you!