HOW TO READ FINANCIAL STATEMENTS LIKE A PRO #PSX #profits

How to Analyze Financial Statements for Smart Investing

Welcome back to the channel! In this video, we’ll demystify the crucial topic of analyzing financial statements like the Profit and Loss Account and the Balance Sheet.
Incomplete knowledge can lead to bad decisions, so we’re here to ensure you understand these concepts fully. Accounting is the language of business, and mastering it will help you evaluate businesses like a pro.

What You'll Learn:
1- How to identify top-quality businesses using financial statements.
2- How to calculate future ROIC (Return on Invested Capital) and why it’s critical for long-term wealth creation.
3- Key industry examples: Cement, Automobiles, and Pharmaceuticals—a practical guide to assessing their financial health.
4- Common pitfalls in financial statements like revenue manipulation, cost inflation, and over-invoicing of assets.

Why This Video Matters:

When you invest in the Pakistan Stock Exchange (PSX), you become a partner with the country’s top businessmen. This video helps you:
1-Understand the logic of investing in businesses.
2-Ensure you are a true equal partner sharing in the company’s success.
By the end of this video, you’ll be equipped to spot high-quality businesses and avoid common financial statement traps, ensuring smarter and more informed investing decisions.

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[theammarsid]

Much needed information, delivered like a PRO!

[muqsitamir]

This is what we actually need and want, great stuff.

[mueezjamil]

Very good work... keep it up! Easy to understand

[Qasim_]

The knowledge shared in this video is commendable, it covered all factors be it industry, competition, financing, operations and investing.

Thank you very much!

[AbdullahShorts]

Another great video
Waiting for investing masterclass to start

[kashifshahani]

Wow ARN that was awesome app nay sara khuch to yahan bta dia master class main kia btaein gay bhai😂. Mind blowing content 😮

[kashifshahani]

The answer to the question is that such practices are common in sugar mills, where they sell a portion of their production, such as sugar bags, off the books in large quantities. This allows them to conceal the actual profit margins from minority shareholders. Additionally, they pay sugarcane growers a lower rate for their primary raw material, offering Rs. 375 per maund, while reporting a higher cost of Rs. 400 per maund to the minority shareholders. This results in an unjust practice, as the true profits are hidden, thereby depriving minority shareholders of their fair share.

[cutesaifi]

if the company's profit is 10 Rs at a revenue of 100 Rs then its profit is 10% so if they under invoice their revenue by 10 Rs their profit would be 11% not 20%. Need clarification, if I am wrong.

[aftabarain]

Sir can you analyse GATI it has beta value of -1