FINANCIAL RATIOS: How to Analyze Financial Statements

💥Financial Ratios Cheat Sheets → accountingstuff.com/shop
In this short tutorial you'll learn how Financial Ratio Analysis works. We'll break Financial Ratios down into their five main groups:
▪ Profitability Ratios
▪ Liquidity Ratios
▪ Efficiency Ratios
▪ Leverage Ratios
▪ Price Ratios
Then I'll show you how to calculate 25 of the most popular Financial Ratios using the Income Statement and the Balance Sheet. Afterwards, you can jump into my Financial Ratios Playlist to explore each ratio in more detail.
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:28 - FINANCIAL STATEMENTS
01:16 - WHAT IS FINANCIAL RATIO ANALYSIS?
01:56 - What types of Financial Ratio are there?
- Cheat Sheet Bundle: accountingstuff.com/shop/fina...
02:39 - PROFITABILITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/prof...
03:47 - Gross Profit Margin (GPM)
04:19 - Operating Profit Margin (OPM)
04:40 - Net Profit Margin (NPM)
05:46 - Return on Assets (ROA)
06:49 - Return on Equity (ROE)
07:37 - Return on Capital Employed (ROCE)
08:11 - LIQUIDITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/liqu...
09:10 - Cash Ratio
09:50 - Quick Ratio
10:17 - Current Ratio
10:29 - EFFICIENCY RATIOS
- Cheat Sheet: accountingstuff.com/shop/effi...
11:04 - Inventory Turnover Ratio
11:26 - Receivables Turnover Ratio
11:43 - Asset Turnover Ratio
12:16 - Payables Turnover Ratio
12:40 - Cash Conversion Cycle
13:09 - Days Sales of Inventory
13:43 - Days Sales Outstanding
14:07 - Days Payable Outstanding
14:52 - LEVERAGE RATIOS
- Cheat Sheet: accountingstuff.com/shop/leve...
15:19 - Debt to Assets Ratio (DTA)
15:43 - Debt to Equity Ratio (DTE)
16:39 - Interest Coverage Ratio
17:03 - Debt Service Coverage Ratio (DSCR)
17:56 - PRICE RATIOS
- Cheat Sheet: accountingstuff.com/shop/pric...
18:26 - Earnings Per Share (EPS)
19:27 - Price-To-Earnings Ratio (P/E Ratio)
20:19 - Price/Earnings-To-Growth Ratio (PEG Ratio)
21:17 - Dividends Per Share (DPS)
22:04 - Dividend Yield Ratio
22:30 - Dividend Payout Ratio
22:59 - FINANCIAL RATIOS MIND MAP
🔎FAQ
▪ My Favourite Accounting Book for Beginners → geni.us/5mKR7m
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DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
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#accounting #financialratios #accountingstuff

Пікірлер: 458

  • @amandakarl7223
    @amandakarl7223 Жыл бұрын

    I hope you know you are basically my accounting 101 professor. My TESU professor just links all your videos in our class materials and it's up to your videos and the book to learn everything. You are doing amazing work and helping me so much!

  • @gingerscapturethemomentpho4546

    @gingerscapturethemomentpho4546

    Жыл бұрын

    mine too!

  • @Missginalove

    @Missginalove

    11 ай бұрын

    My professors just through a book at us 🙄

  • @albertc2390

    @albertc2390

    10 ай бұрын

    ​@@Missginalovethrew

  • @TuneActive
    @TuneActive Жыл бұрын

    Words cannot express how grateful I am for your course, thank you James

  • @ibrahimalbaz2595
    @ibrahimalbaz25952 ай бұрын

    I swear, these kind of videos that make me believe that university education is useless, whenever there is Monopoly in any field, the quality always go down, thats the thing about internet, the professor at the university, cannot get fired nor someone else takes his place, unlike in the internet, if you wanna make money, you gotta provide something special.

  • @AccountingStuff

    @AccountingStuff

    2 ай бұрын

    Glad to hear you found this one useful!

  • @danishahmed4005

    @danishahmed4005

    24 күн бұрын

    @Ibrahim. Agreed video is excellent. But our teachers are also excellent. The video came through also by learning only

  • @MeghanSandbeck
    @MeghanSandbeck Жыл бұрын

    Your videos are the reason I am passing my Introduction to Financial Accounting course. I have realized that I learn best by understanding the big picture, and THEN learning the steps which is not the way my textbooks are written, but it is the way you explain the concepts. You're the hero all of us accounting students didn't know we needed. Thank you!

  • @UmarA2203

    @UmarA2203

    27 күн бұрын

    got my Intro to fin. accounting final exam on Monday

  • @angelnicoleorias8199
    @angelnicoleorias8199 Жыл бұрын

    thank you so much for this video! i have to memorize around 40 ratios for our midterm exams, and this video helped me tick 26 of them! i love how you grouped the ratios, which made memorizing the formulas a loooot easier, explained what these formulas stand for, their relevance. so happy i came by this vid. it helped me a lot! i've also been sending my classmates this video!

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    No worries, all the best in your midterms!

  • @bronnies007
    @bronnies007 Жыл бұрын

    2 years off as an accountant and your videos help me refresh my memory, thank you so much james

  • @sohailmallick009
    @sohailmallick0097 ай бұрын

    This is the most comprehensive, complete and concise video available on financial ratios.....it is my go-to video any time I want to revise my concepts.

  • @AccountingStuff

    @AccountingStuff

    7 ай бұрын

    Thanks, glad you enjoyed it!

  • @abasi-enebassey1108

    @abasi-enebassey1108

    5 ай бұрын

    I totally agree. Thank you so much @AccountingStuff

  • @ernieaguilera1272
    @ernieaguilera1272 Жыл бұрын

    Brilliant and Beautiful Financial Control Systems. Thanks for posting!

  • @mohamedgamal9903
    @mohamedgamal9903 Жыл бұрын

    What a great video !! I needed this video since long time and I really wanted to learn this ratios from you .. you got your special way to learn others .. you are really talented ... thanks alot ❤️ I hope you start your costing and budgeting videos that would be great 👌🏻

  • @camillaszymanowska1632
    @camillaszymanowska1632 Жыл бұрын

    These videos are so helpful. Would love some more on gearing and gearing ratios!

  • @monah2030
    @monah2030 Жыл бұрын

    James! You won’t believe how happy I am to see you ! I had a terrible day and you changed my mood a lot ! Please, please visit us more often! You are amazing 😀 excellent lessons as always.

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    Thanks Mona, sorry to hear you had a bad day. All the best!

  • @graywilliams_77.
    @graywilliams_77. Жыл бұрын

    To achieve greatness, you need to start working with a Financial Advisor. Investing remains the smartest way to prepare for the future.Have been working with ROCHELLE DUNGCA-SCHREIBER for 8years and I'm extremely pleased with the good returns. The good news is, it's never too late to start investing.

  • @graywilliams_77.

    @graywilliams_77.

    Жыл бұрын

    Credits to ROCHELLE DUNGCA-SCHREIBER, she saw me through the process. You can glance her name up on your google and verify her yourself. she has years of financial market experience...

  • @ChhumSoklin-pk4qy
    @ChhumSoklin-pk4qy Жыл бұрын

    I really love your explanation. Your video is amazing. It makes me understand and memorize the lesson quickly. Hope to see your new video soon.

  • @KeshawKSinha
    @KeshawKSinha Жыл бұрын

    the way explain is awesome. Even many big shot professors are not able to make simplify as you do.

  • @theguywith
    @theguywith Жыл бұрын

    Really immaculate with your statements. True to the way of accounting stuff. I have to catch up on quite a few videos now!

  • @youtubecommentrater3379
    @youtubecommentrater3379 Жыл бұрын

    You are needed...this video was needed champ! We might not deserve you but Thank You my boy 💎

  • @asfandyar374
    @asfandyar3749 ай бұрын

    This is by far the best video on financial ratios I have EVER seen. Splendid work👏👏👏

  • @AccountingStuff

    @AccountingStuff

    9 ай бұрын

    Thanks!!

  • @montanaHE
    @montanaHE Жыл бұрын

    Your video taught me more in 25 min, than my high school did in 4 years.

  • @jennifermertz2812
    @jennifermertz281219 күн бұрын

    Thank you. I'm a little late discovering your video but they still helped. I'd been struggling at work with profit margins and turnover ratios as no one had ever explained how and where to get the information. The AP/AR turnover ratio was exactly what I needed to know to give better answers to my boss. So, thank you.

  • @AccountingStuff

    @AccountingStuff

    18 күн бұрын

    Great to hear you found it useful!

  • @aasthavijay
    @aasthavijayАй бұрын

    This is one of the most useful, crisp video on Fin ratios!

  • @AccountingStuff

    @AccountingStuff

    Ай бұрын

    Thanks! Glad you enjoyed it :)

  • @archanak3340
    @archanak3340 Жыл бұрын

    Hi James, I recently came across your channel and loved your videos!! Big thank you for making them. Would you please make some videos explaining basic mobth end processes and secondary balance accounting such as BS reclass, funding, cost of carry etc?? Thanks.

  • @Agaettis
    @Agaettis Жыл бұрын

    Thank you. My current Business class basically just leaves us to read the chapter and take a test, I couldnt understand until I watched this

  • @happycrabknits9109
    @happycrabknits9109 Жыл бұрын

    Thanks!!! This is a great refresher

  • @MrPushupp
    @MrPushupp Жыл бұрын

    wow wow wow this video was packed full of it, just got done making falsh cards of these all so i can lopok at them on the go and such. Thanks for the video!

  • @Uddhav05
    @Uddhav05 Жыл бұрын

    Great videos and has helped me (a non finance guy) understand the concepts much better now. Is it possible for you to share some references or sources too in description that will help us further?

  • @zhongyiwo9738
    @zhongyiwo9738 Жыл бұрын

    thank you. you saved my accounting course

  • @checkdown3774
    @checkdown3774 Жыл бұрын

    Loved all your accounting videos mr. James. I've moved more into finance and I'm jack to the t its to see you made a video on statements.

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    No worries, all the best in your new role :)

  • @Disrespectedits
    @Disrespectedits Жыл бұрын

    Started watching your videos and I am already a fan, please keep up the quality content. 🙏

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️

  • @laurademaio5894
    @laurademaio58944 ай бұрын

    Thank you for this incredibly understandable video that helped me complete a financial analysis project I first found daunting with ease!

  • @AccountingStuff

    @AccountingStuff

    4 ай бұрын

    No problem!

  • @foolonamoon
    @foolonamoon Жыл бұрын

    This is good information. Thank you for making it available.

  • @IsabelRodriguez-nv2ue
    @IsabelRodriguez-nv2ue Жыл бұрын

    Thank you very much for creating this fantastic, amazing and formidable video!!!!! Super well explained and organized!!! It is a real treasure! Thanks!!!!

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    You're very welcome!

  • @chibuezedaike9331
    @chibuezedaike9331 Жыл бұрын

    You are simply the best James, you are good at what you do, Gracias,

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️✍️

  • @descraker
    @descraker Жыл бұрын

    love your work man and as an appreciation I purchased all the sheet even though am here only for general knowledge. amazing work that is helping big group of people of different generations/parts of the work ,,, all the best keep it up

  • @vtuscript

    @vtuscript

    2 ай бұрын

    Can we share please

  • @waibosibili8546
    @waibosibili8546 Жыл бұрын

    Thanks for the much needed information ❤

  • @thelibrarian2189
    @thelibrarian2189 Жыл бұрын

    Absolutely helpful! Thank you! Please consider making a video on Pro Forma statements 💪🔝🔝

  • @kampambamubanga3810
    @kampambamubanga3810 Жыл бұрын

    Watching from Zambia and your channel has always been helpful. Thank you and keep up with the excellent content.

  • @charleskeanureevesjohn8596

    @charleskeanureevesjohn8596

    Жыл бұрын

    Nice one 👍

  • @tataforever724
    @tataforever724 Жыл бұрын

    Very well explain and easy to understand it.

  • @darkmankind
    @darkmankind8 ай бұрын

    Thanks for the video. You just helped me pass my last financial analysist assignment and provided a great cheat sheets. I am a subscriber.

  • @AccountingStuff

    @AccountingStuff

    8 ай бұрын

    Congrats on passing your assignment!! All the best

  • @jolly110383
    @jolly110383 Жыл бұрын

    This is just AWESOME :) Thank you!

  • @SpecialKtoday
    @SpecialKtoday Жыл бұрын

    Brilliant video! Thanks James :)

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️

  • @Princesscolex
    @Princesscolex Жыл бұрын

    Thank you so much for all of your videos. This is better than Becker in my opinion.

  • @zoeskee1199
    @zoeskee1199 Жыл бұрын

    Very informative. Thanks for sharing.

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    No worries, glad you found it useful :)

  • @denconstutube
    @denconstutube2 ай бұрын

    Excellent video. You have covered so much in a short video. Well explained and easy to follow and learn. Thank you.

  • @AccountingStuff

    @AccountingStuff

    2 ай бұрын

    Thanks, glad you enjoyed it!

  • @David-jv7ot
    @David-jv7ot Жыл бұрын

    This is beautiful and simple and wonderful and so well delivered

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    Cheers David!!

  • @teacherrussell5206
    @teacherrussell5206 Жыл бұрын

    VERY USEFUL VIDEO!!!

  • @mahnoortufail3427
    @mahnoortufail3427 Жыл бұрын

    I waited soo long for your updates Please upload frequently it is of great help

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️

  • @hisokaamorou4211
    @hisokaamorou4211 Жыл бұрын

    Great video for finance and accounting students

  • @unclesly2465
    @unclesly2465 Жыл бұрын

    thank your so much mate, you ability to semplify things is nuts

  • @analizazara62
    @analizazara622 ай бұрын

    Thank you! Well explaned and easy to understand.

  • @AccountingStuff

    @AccountingStuff

    2 ай бұрын

    Great to hear you found it useful :)

  • @samysr9610
    @samysr961011 ай бұрын

    You a professional person who dip him self over long time on financial analysis

  • @dennisleka4346
    @dennisleka4346 Жыл бұрын

    Amazing how you simplified Ratios in just 25 minutes

  • @kishoremohan6462
    @kishoremohan6462 Жыл бұрын

    Omg , I was waiting for this video & your videos are very vivid & easy to understand. Thanks a million for the videos so far. I’m learning & I’m going to apply for jobs ( Assistant accountant, finance intern & accounts payable)

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    Best of luck in your job hunt!

  • @sameha.mosaicart7136
    @sameha.mosaicart713611 ай бұрын

    Thank you , great one ❤God bless you

  • @Adelade500
    @Adelade500Ай бұрын

    Thank you very much for this... excellent work

  • @AccountingStuff

    @AccountingStuff

    Ай бұрын

    You're very welcome :)

  • @iamfabgirl7820
    @iamfabgirl7820 Жыл бұрын

    Hey James! I've been watching these accounting videos of yours from a long time now, and I've been really liking them. I want you to make some videos on the following topics (please as a request). 1. Books of original entry 2. Cashbook 3. Adjusted Cashbook 4. Capital & revenue expenses & incomes 5. Receipts 6. Control accounts 7. Source Documents 8. Errors I am requesting you as I really have understood all the topics only from your videos. P.S: I have my CAIE's so I really want help. Thank you! 0:38

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️✍️

  • @TerryCollinsP31Lifestyle
    @TerryCollinsP31Lifestyle6 ай бұрын

    WOW!!! You are really good at explaining this.

  • @AccountingStuff

    @AccountingStuff

    6 ай бұрын

    Thanks!

  • @deepalibagga1902
    @deepalibagga19028 ай бұрын

    amazingly summarized! thank you!

  • @AccountingStuff

    @AccountingStuff

    8 ай бұрын

    Thanks, glad you enjoyed it

  • @SONUKUMAR-qv6jm
    @SONUKUMAR-qv6jm Жыл бұрын

    Fabulous the way you taught It is mind blowing and I am dam sure that It will help me allot. THANKU SO MUCH

  • @europaexplorer1
    @europaexplorer1 Жыл бұрын

    Love this!

  • @sayedhussainmuhabat813
    @sayedhussainmuhabat813 Жыл бұрын

    Hi James, I learned so many things from your videos. Thank you! Could you please explain budget and types of budget?

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️✍️

  • @jason16392
    @jason16392 Жыл бұрын

    Hi James, I love your videos, they help me so much!. Please can you make some videos about auditing.?

  • @scholarshuvo4221
    @scholarshuvo422119 күн бұрын

    your contents is life-saving for accounting students. Thanks a lot. Appreciation from Bangladesh 🇧🇩

  • @AccountingStuff

    @AccountingStuff

    18 күн бұрын

    No problem, happy to help :)

  • @TerryCollinsP31Lifestyle
    @TerryCollinsP31Lifestyle6 ай бұрын

    Good Morning James, Thanks for doing this video.

  • @AccountingStuff

    @AccountingStuff

    6 ай бұрын

    You are welcome

  • @mahssaahi8084
    @mahssaahi80847 ай бұрын

    I really appreciate you for providing such useful stuff.🙏

  • @AccountingStuff

    @AccountingStuff

    7 ай бұрын

    You're most welcome :)

  • @syahirfawwazmohdsofian6441
    @syahirfawwazmohdsofian6441 Жыл бұрын

    Thank you James. Ure the best. Help me out till i graduate

  • @nicholasiezzi9790
    @nicholasiezzi9790 Жыл бұрын

    I can't wait to take accounting next quarter. I just finished macroeconomics. I hear everything is backwards in accounting though. I go to school for business we have to take accounting 1 and 2

  • @SharibJameel0
    @SharibJameel010 ай бұрын

    Thank you so much for this. This was such a big help

  • @AccountingStuff

    @AccountingStuff

    10 ай бұрын

    No worries, glad I could help :)

  • @cigartrend
    @cigartrend11 ай бұрын

    was really helpful thanks

  • @mohamedeassa
    @mohamedeassa Жыл бұрын

    Thanks for the amazing content. Keep it up

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    Cheers Mohamed!

  • @user-vg7hw4qm8i
    @user-vg7hw4qm8i8 ай бұрын

    amazing video, visualized each concept. lovely.

  • @AccountingStuff

    @AccountingStuff

    8 ай бұрын

    Thanks, glad you enjoyed it!

  • @Yo_Kelz
    @Yo_Kelz Жыл бұрын

    THANK YOU!!

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️

  • @sk.jahirulislam1921
    @sk.jahirulislam1921 Жыл бұрын

    Great job! Keep it up .

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    Thanks!

  • @uptown7930
    @uptown79306 ай бұрын

    You are an amazing Teacher Man. Keep up the good work

  • @AccountingStuff

    @AccountingStuff

    6 ай бұрын

    Thank you!

  • @tumelochepete2360
    @tumelochepete23609 ай бұрын

    You’re awesome man, thank you for your videos.

  • @AccountingStuff

    @AccountingStuff

    9 ай бұрын

    My pleasure!

  • @user-en7wl8rc7h
    @user-en7wl8rc7h11 ай бұрын

    That is perfect,thanks bro.

  • @thinkusaarabic
    @thinkusaarabic Жыл бұрын

    Thanks 🙏 so happy 😀

  • @EstebanFernandezYT
    @EstebanFernandezYTАй бұрын

    thanks a lot man, this was a very useful video

  • @AccountingStuff

    @AccountingStuff

    Ай бұрын

    No problem! Glad you enjoyed it :)

  • @oumaymaelammari4180
    @oumaymaelammari4180 Жыл бұрын

    This is gold for a student

  • @alexandervalladares2501
    @alexandervalladares25014 ай бұрын

    This video was amazing … Thank you so much.

  • @AccountingStuff

    @AccountingStuff

    4 ай бұрын

    You're very welcome :)

  • @chibuezedaike9331
    @chibuezedaike9331 Жыл бұрын

    A topic on intercompany accounting and related party transactions would be really nice

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️✍️

  • @ashleyqin7157
    @ashleyqin7157 Жыл бұрын

    Thanks for the amazing organized contents. While CCC= DSI+DSO- DPO, instead of plus all three of them...

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    You are correct! Sorry for the typo. I'll pin a comment to show this correction

  • @sepideabbasi8361

    @sepideabbasi8361

    Жыл бұрын

    Thanks for telling. I had the same problem.

  • @abdul8236
    @abdul8236 Жыл бұрын

    Thank you James. It is clear and precise. Could you make a video on Intercompany accounting and transaction elimination

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️

  • @count9548
    @count95486 ай бұрын

    Amazing lesson!

  • @AccountingStuff

    @AccountingStuff

    6 ай бұрын

    Glad you enjoyed it :)

  • @michlmyez6650
    @michlmyez6650 Жыл бұрын

    This video was so useful Thank you so much Best of luck 💎♥️👍

  • @AccountingStuff

    @AccountingStuff

    Жыл бұрын

    That's great to hear thanks!

  • @thinkusaarabic
    @thinkusaarabic11 ай бұрын

    Best accounting videos ❤❤❤

  • @yaren9519
    @yaren95199 ай бұрын

    Hello, Thank you for the clear explanations! I had a question about ROA. In the video it is stated simply as the ratio of net income to total average assets. In my textbook, we saw it as ROA = EWI / Average Total Assets, where EWI is: EWI = Net Income + Interest Expense (1 - tax rate). I'm wondering which one is actually used in accounting in companies. Does it differ? Which one would you say is more correct or reliable? Thank you.

  • @syahiranajihaibrahim2190
    @syahiranajihaibrahim2190 Жыл бұрын

    YOU ARE AMAZING!!!!

  • @ezekielmwebaze1423
    @ezekielmwebaze14234 ай бұрын

    Great topic, thank you sir

  • @AccountingStuff

    @AccountingStuff

    4 ай бұрын

    Glad you enjoyed it :)

  • @kanikamaheshwari9732
    @kanikamaheshwari973211 ай бұрын

    What I am gonna write is not a new compliment to this on any other video on this channel. However, here it goes. So, I think this channel needs to be mandatory in schools & teachers are not needed thank you😛 Also, I seriously regret not having KZread back then growing up. Its just so easy. You can pause, play, take notes and at the same time look for meanings & clarifications on a certain topic. You are making lives of students & professionals not just easy but also smart. Thanks a ton for existing......🥰

  • @mmashar6809
    @mmashar6809 Жыл бұрын

    Thanx bro i literally needed to learn this for exam

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    ⬆️✍️

  • @masoodahmed6579
    @masoodahmed65799 ай бұрын

    Simply outstanding.

  • @AccountingStuff

    @AccountingStuff

    9 ай бұрын

    Thanks!

  • @danielpalmer8156
    @danielpalmer8156 Жыл бұрын

    Holy shit batman this is gold. Thank you for this video I was trying to find a KZread channel I could understand and many are way too hard to follow what they are saying.

  • @fjordolsen
    @fjordolsen Жыл бұрын

    thank you

  • @user-rb2es8po3k
    @user-rb2es8po3k Жыл бұрын

    thanks brother

  • @tomasdvorak6674
    @tomasdvorak6674 Жыл бұрын

    Regarding the Cash Conversion cycle, shouldn´t the Days Payable outstanding be actually deducted from the Days sales of Inventory and Days sales outstanding?

  • @mikele7982

    @mikele7982

    Жыл бұрын

    Yeah, basically CCC measures how quick the company make investment and asset turn into cash! DSO, DIO is cash inflow while DPO is cash outflow. So DPO should be subtracted. Well he made errors here and there as well so it would be best to use it as a mini guide and figure out the meanings behind each ratio yourself.

  • @TheRepain
    @TheRepain3 ай бұрын

    Great explanation

  • @AccountingStuff

    @AccountingStuff

    3 ай бұрын

    Glad it was helpful!

  • @MrDCD007
    @MrDCD007 Жыл бұрын

    Hi james thanks for this knowledge

  • @accountingstuff7625

    @accountingstuff7625

    Жыл бұрын

    👆✍️

  • @asheshrajhans8325
    @asheshrajhans83257 ай бұрын

    Thank You so much ❤

  • @AccountingStuff

    @AccountingStuff

    7 ай бұрын

    You're very welcome :)

  • @SAAHILSINGHH
    @SAAHILSINGHH3 күн бұрын

    Bro i am from India and by mistake I found your Yt channel but I think I got Great accounting Teacher ever ❤

  • @AccountingStuff

    @AccountingStuff

    3 күн бұрын

    Thanks, much appreciated :)

  • @clarityadvisor8776
    @clarityadvisor8776 Жыл бұрын

    Amazing Content with beautiful Slideshow, James! I am wondering which software you use to record the video, specifically the map?? Thank you