3 Liquidity Ratios Every Financial Analyst And Investor MUST Know!

แชร์
ฝัง
  • เผยแพร่เมื่อ 5 ก.ย. 2024

ความคิดเห็น • 88

  • @alexdavidson9204
    @alexdavidson9204 4 ปีที่แล้ว +17

    That is probably the best & most succinct explanation of these 3 ratios. Look forward to watching more of your videos.

  • @paulmartin3296
    @paulmartin3296 4 ปีที่แล้ว +2

    Its a good explanation of the ratios, however saying quick ratio of 0.8 is poor is a little miss leading as this ratio needs to be assessed against industry averages to really understand if this is poor or not.

    • @TheFinancialController
      @TheFinancialController  4 ปีที่แล้ว +2

      It's a good point, although I'll say that when a company has less liquid assets than it's current obligations, it's rarely a good situation.

  • @michellewright99
    @michellewright99 3 ปีที่แล้ว

    This was very insightful as it gives me new ideas on how to look at my personal financial health in addition to understanding why businesses make some of the decisions they do surrounding invoicing, collections and inventory.

  • @cheikhwely
    @cheikhwely 2 ปีที่แล้ว +1

    Excellent content and easily explained concepts. Your students or clients are not likely to lack clarity in determining the health of their finances. Thank you and keep up the good work :)

  • @AhMauy
    @AhMauy 6 หลายเดือนก่อน

    Thank you so much for sharing your knowledge with us. Can you help me understand this: why should a company vehicle a “fixed asset” and not “other asset: equipment “ ?

  • @nitikaverma1810
    @nitikaverma1810 9 หลายเดือนก่อน

    very well explained... and really amazing content

  • @jessiesi1412
    @jessiesi1412 3 ปีที่แล้ว +2

    Very good explanations! I learned these ratios. I have a question about the AR and Credit Sales. What is difference between these two terms and where could we find credit sales in the financial statement? Please advice! Thanks!

    • @TheFinancialController
      @TheFinancialController  3 ปีที่แล้ว

      Good question! pls google the question "what's the difference between ..&.." and also what is "Credit Sales", plenty of articles on this online.

  • @naveenkumarsharma9445
    @naveenkumarsharma9445 3 ปีที่แล้ว +1

    Hi Bill, Thanks for your videos. You are great explainer. Could you please make a videos on some important terms with examples for understanding like used in this example...Def. revenue,AR,AP,Equity etc.

  • @gw8755
    @gw8755 3 ปีที่แล้ว +3

    Great explanation. Could you please make a video about the interpretation of the ratio calculations, when we compare them to the previous year or compare to other company's ratio. Why is is Better or Worst? Thank you!

    • @TheFinancialController
      @TheFinancialController  3 ปีที่แล้ว +2

      Sure will do

    • @gw8755
      @gw8755 3 ปีที่แล้ว

      @@TheFinancialController Thank you. Looking forward.

  • @pasufi
    @pasufi 8 หลายเดือนก่อน +1

    great video! I was however confused by "credit sales" - where can I find it in the financial statements?

    • @PJMcInerney
      @PJMcInerney 7 หลายเดือนก่อน +1

      Income Statement

  • @helena.5760
    @helena.5760 3 ปีที่แล้ว +1

    I really like this, it refreshes my memory

  • @sarahn3935
    @sarahn3935 3 ปีที่แล้ว

    Perfect and easy explanation. Thank you 🙏🏻

  • @rajamanisubramaniyan9114
    @rajamanisubramaniyan9114 3 ปีที่แล้ว

    Hi Bill Hanna
    Greetings !!!
    Hope you and your family are safe !!!
    Good Video to understand in a very simple manner. Requesting you to go on more video on Finance Analyst.
    Thanks !!!
    Hope you will have a good day.

  • @aneezasonisoni9866
    @aneezasonisoni9866 3 ปีที่แล้ว

    I am learing alot from your videos. Excellent explaination. 👍

  • @cinthiasabillon144
    @cinthiasabillon144 3 ปีที่แล้ว

    Thanks for making these videos. They are very well explained!

  • @user-vh5kn
    @user-vh5kn ปีที่แล้ว

    Any video on trend analysis?

  • @rachedecheikh8276
    @rachedecheikh8276 2 ปีที่แล้ว

    Thank you for this useful course.
    Do you have some financial diagnostics report ? I want to improve my vocabulary ( how I write a repot ).
    Thanks you in advance.

  • @1985argiris
    @1985argiris ปีที่แล้ว

    Question: if we reserved for Bad Debt and obsolescence inventory, are these amounts being deducted from A/R and Inventory respectively when we calculate the ratios?

  • @MsFender32
    @MsFender32 3 ปีที่แล้ว

    Excellent and thorough explanation. Thank you, sir!

  • @yinyin7614
    @yinyin7614 2 ปีที่แล้ว +1

    Super helpful video.

  • @kibimacheru6228
    @kibimacheru6228 3 ปีที่แล้ว

    I like your videos... always simple and easy to understand, Can they ask this kind of questions on an assessment for a junior Financial controller? I have an assessment this week for a junior financial controller and I don't know what to expect

  • @chirayugarg7207
    @chirayugarg7207 4 ปีที่แล้ว +1

    Sir in case of a banking company what should be the ideal quick ratio?
    2)Can we use DSO to calculate bank's ability to convert npa's into cash or recover them?
    Thanks for the video sir.

    • @TheFinancialController
      @TheFinancialController  4 ปีที่แล้ว

      Hey chirayu I am not really an expert on banks, so not sure there.

    • @paulmartin3296
      @paulmartin3296 4 ปีที่แล้ว +1

      Hi Chirayu, You need to review a banks balance sheet differently to that of a companies balance sheet, there is alot more going on in terms of understanding the solvency of a ban, it is a subject all of its own.

    • @chirayugarg7207
      @chirayugarg7207 4 ปีที่แล้ว

      @@paulmartin3296 thanks for the reply

  • @verbesta1
    @verbesta1 3 ปีที่แล้ว +1

    Hi Bill, I rewatched the video three times, I wondered why I can't find the credit sales number. Did you just assume it a number $10,000 here only for calculation practice? Thanks.

    • @nokafisher2771
      @nokafisher2771 3 ปีที่แล้ว +1

      lol I knew someone was going to ask this question so scrolled down and yes found the question. 😂

  • @kodirjonrakhimov7657
    @kodirjonrakhimov7657 11 หลายเดือนก่อน

    Can you explain please, where $10k comes from in the formula of DSO as Credit sales ?

  • @550manu
    @550manu 2 ปีที่แล้ว

    very nicely explained. thanks and regards

  • @MissD0829
    @MissD0829 ปีที่แล้ว

    Hi, great video. I'm an aspiring financial analyst and love your insightful videos. Do you offer mentorship support?

  • @jansyavi
    @jansyavi 3 ปีที่แล้ว

    Super uitleg, your great, but where does ths 10, 000 credit sales come from in the Balance Sheet?

  • @jinchen1734
    @jinchen1734 4 ปีที่แล้ว

    Excellent explanation.👍 Keep up the good work! 💪

  • @thatswhatshesaidbro
    @thatswhatshesaidbro 4 ปีที่แล้ว

    Great video thanks another good one to add is fcf/net debt if a business can not pay its debt within 5 years of fcf move on!

    • @TheFinancialController
      @TheFinancialController  4 ปีที่แล้ว

      Thanks Andre, always appreciate your input!

    • @thatswhatshesaidbro
      @thatswhatshesaidbro 4 ปีที่แล้ว

      The Financial Controller what would you say are the 3 liquidity ratios specifically for banks ?

    • @TheFinancialController
      @TheFinancialController  4 ปีที่แล้ว

      Hey Andre, am not really an expert on banking, so not so sure.

  • @a.bismail6492
    @a.bismail6492 ปีที่แล้ว

    I may be incorrect. but isn't quick ratio Current assets/Liabilities and current ratio current assets-Inventory/Liabilities?

  • @shreenivasdushi5299
    @shreenivasdushi5299 3 ปีที่แล้ว

    great man...sounds good....keep going and rocking...

  • @princesspalqisa2423
    @princesspalqisa2423 3 ปีที่แล้ว +1

    I am from Somalia I study Bank and finance

  • @dejib.3930
    @dejib.3930 9 หลายเดือนก่อน

    Beautiful.

  • @ziyadalshaban775
    @ziyadalshaban775 3 ปีที่แล้ว

    That was amazing, just one question where i can find credit sales in financial sheet

  • @HepCatJack
    @HepCatJack 3 ปีที่แล้ว

    What about Debt to Equity ratio and Debt Ratio ?

  • @jzhuo5145
    @jzhuo5145 4 ปีที่แล้ว

    very clear and good explanation.t hank u

  • @ochanbrian1361
    @ochanbrian1361 ปีที่แล้ว

    Well explained. keep this up

  • @marynayakovenko5539
    @marynayakovenko5539 3 ปีที่แล้ว

    Hi, Bill! I'd like to thank you for the amazing work you're doing! Could u explain the difference between A/R and credit sales? Is it just the portion of Sales that used to be A/R? Thanks a lot.

    • @TheFinancialController
      @TheFinancialController  3 ปีที่แล้ว +1

      Thanks. Credit sales is a certain portion or sales/revenue that is “on credit” meaning no cash collected on the spot. In essence most company’s sales are credit sales, unless we are talking about a restaurant

  • @malamofficial7558
    @malamofficial7558 9 หลายเดือนก่อน

    Which data of credit sale you take from?

  • @sakshi23ca
    @sakshi23ca 3 ปีที่แล้ว

    Thank you 😊

  • @muralibura362
    @muralibura362 ปีที่แล้ว

    What is the indication for quick ratio

  • @blu4174
    @blu4174 3 ปีที่แล้ว

    Good explanation sir I am from India
    I want to know what all questions are asked for the role of financial analyst as a fresher in the interview

  • @malamofficial7558
    @malamofficial7558 9 หลายเดือนก่อน

    Deferred revenue is unearned income?

  • @GPD989
    @GPD989 6 หลายเดือนก่อน

    How to find credit sales which you have taken 10000 in this case ?

  • @ScriptedOcean
    @ScriptedOcean 4 ปีที่แล้ว

    Super Helpful Thank you!

  • @meytithveasna339
    @meytithveasna339 3 ปีที่แล้ว

    Hi Bill what should I prepare for an interview for finance analyst? Please give some tips because I prepare an interview as a finance analyst

  • @drsshetty12
    @drsshetty12 ปีที่แล้ว

    I wanna learn from you 🎉🙏

  • @ibrahimbaimbakoroma60
    @ibrahimbaimbakoroma60 2 ปีที่แล้ว

    I have an assignment: what are the financial accounting tools used to monitor liquidity. Can someone pls list them for me?

  • @kamwaniamit
    @kamwaniamit 3 ปีที่แล้ว

    If AR is $20000, how come Credit Sales be $10000? Also how to Credit Days to be taken incase multiple options of 30, 45, 60 & 90 days?

    • @TheFinancialController
      @TheFinancialController  3 ปีที่แล้ว

      credit sales refers to sales for which the customer will pay in the future. Some sales are made for cash in this case.

  • @sunnyb831
    @sunnyb831 2 ปีที่แล้ว

    How can A/R be 20 k when your credit sales is only 10 k ?

    • @TheFinancialController
      @TheFinancialController  2 ปีที่แล้ว +1

      Slow paying customers.

    • @sunnyb831
      @sunnyb831 2 ปีที่แล้ว

      @@TheFinancialController Thanks.
      From where do we collect sales credit.
      Does it come from Trial Balance

  • @jeycee6807
    @jeycee6807 3 ปีที่แล้ว

    The most handsome CPA 😍❤️