How to Read and Understand a Balance Sheet (Apple in Review)

Dive into the world of financial analysis with this comprehensive guide on reading and analyzing a balance sheet, featuring Apple's latest financials. Perfect for analysts, managers, entrepreneurs, or aspiring investors!

🔍 What's Inside:
▪️ Understanding Financial Statements: Learn where to find financial statements, focusing on the 10-K (annual) and 10-Q (quarterly) reports, typically available in the Investor Relations section of a company's website.
▪️ Analyzing Apple's Balance Sheet: Get a step-by-step walkthrough of Apple's balance sheet, including key components like assets, liabilities, and equity.
▪️ Insightful Ratios for Financial Analysis: Discover important financial ratios like current ratio, debt ratio, and working capital days to assess a company's liquidity, capital structure, and operational efficiency.
▪️ Operational Efficiency Analysis: Explore Apple's management of assets through inventory days outstanding, receivable days, and payable days, culminating in the calculation of the cash conversion cycle.
▪️ Summarizing Financial Health: Conclude with a summary of Apple's financial health, highlighting liquidity, debt management, and operational efficiency.

In this video you'll learn how to read a balance sheet and how to calculate some important ratios. We'll cover the current ratio, debt ratio, working capital days, and the cash conversion cycle.

00:00 How to Read and Analyze a Balance Sheet
00:34 10-K and 10-Q Reports
01:13 Assets
03:06 Liabilities
05:23 Equity
07:54 Ratios in Financial Analysis
08:26 Current Ratio
09:49 Debt Ratio
11:20 Inventory Days
12:32 Receivable Days
13:09 Payable Days
13:39 Cash Conversion Cycle
14:19 Summary

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#Excel #Finance

[kleanthisskoulikaris]

Words cannot describe how appreciative I am for you doing such a series, slightly off Excel but delving into actual Finance principles. We don't even work for the same company, but I'd nominate you as "Employee of the Month" just for that!

[Neknasty-kvyf]

You have no idea how refreshing this is to grasp this kind of information. This video saves a lot of time learning the necessary information compared to some college courses.

[websterchauke]

I think lots of people would be shocked and amazed if you were to do an analysis of Tesla. 🤣

[vijayarjunwadkar]

How I wish again and again that these videos could have been there, when I was studying Accounting in college! Thank you Leila for the great explanation of these concepts. It was a welcome refresher! 😊👍

[andrewcharlesmoss]

Thanks for this. As someone who doesn’t have a finance background, my knowledge of balance sheets is limited, but your video was very informative.

[rogerloydmccoy]

I would really appreciate a video on how the P&L, Balance Sheet, and Cash Flow statements flow between each other.

[wizardofaus]

Thank you Leila, outstanding as always. An entire series on this topic would be fantastic.

[jervahnmorgan]

She’s awesome!!! How in the heck does she explain this better than my professors did in college???

[AyodejiA]

You genuinely have a simple way to explain and presents concepts to a broad audience. Kudos.

[derranstokes]

what a great video - explaining a very complex financial analysis for everyone to understand. Thank you for sharing such hard earned knowledge.

[User-fizf]

Was postponing the balance sheet thing for years, but could not do it anymore seeing such an outstanding lesson. Merci Leila

[heroicwhisper]

Outstanding video. Best explanation of a Balance Sheet I’ve watched or have explained. As a bookkeeper, I look at BS frequently and this was the clearest explanation. Well done Leila

[Sundowners]

Great intro to BALANCE SHEET. Includes highlighted portions, definitions, formulas and examples. Helpful. Thank You.

[Stoogeyful]

Just started my accounting module on ratio analysis and this video showed up, really useful explanation using a real company's balance sheet.
It would be great if you made a video on Apple's P&L and cashflow.

[jdanois]

This is an excellent and simplified way of explaining the B/S and what to look for in often confusing SEC Filings. TY!

[semmunn]

I cannot say enough about how good this lady is. I have watched to over 100 such videos. Many of them drag it out to fill 20 minutes. Turns out, if the videos are longer, they make more money. This lady stays to the point makes it clear. Maybe I am biased, because I have an accent too.

[hansklein]

Thank you so much for that crash course in MBA, Leila! Companies like Apple & Co do their balance sheet with a specific software, but... Excel allows to do a lot more than simple mathematic operations! 🙂

[pravinr]

To The World You May Be Just a Teacher But To Your Students You Are A Star

[mohamedsaadhouga]

Thank You Leila, you made it looks very easy to assimilate!
Much appreciated.

[jennyroserepollo]

Engineering major but we have an accounting subject. This video helped me a lot in my coursework. Kudos, Leila. Thanks.