How to read a balance sheet: Alphabet Inc case study

The Finance Storyteller
The Finance Storyteller
58.7 هزار بار بازدید - 6 سال پیش - How to read and analyze
How to read and analyze a balance sheet of a company? This balance sheet tutorial is a companion video to “How to read an annual report”, “How to read an income statement” and “How to read a cash flow statement”, and covers the 2017 balance sheet of Alphabet Inc (the parent company of amongst others Google). The balance sheet is a fascinating financial statement, you can learn a lot from it about the state of health of a company. Learning to read a balance sheet takes practice, practice and practice, and some understanding of the key terminology. You have come to the right place for that!

⏱️TIMESTAMPS⏱️
00:00 Introduction
00:35 What is a balance sheet
01:41 Where to find balance sheet information
02:09 Assets on the balance sheet
03:17 Cash and marketable securities
04:12 Property and equipment
05:01 Goodwill
06:32 Balance sheet analysis checklist
06:52 Liabilities and equity
08:03 Income taxes payable
08:57 Accrued expenses and other liabilities
10:02 Current ratio example
10:50 Balance sheet analysis summary

The balance sheet is an overview of what a company owns and what a company owes at a specific point in time, in this case study December 31st, 2017. When I analyze a balance sheet, there are several things I always check, for each company I look at: the balance sheet total, which should be the same left and right (what a company owns equals what a company owes); the current ratio, a good indicator of a company’s liquidity; and equity as a percentage of the balance sheet total, which gives an indication of how the company is financed, and what its level of robustness is. Then I look specifically at several items on the assets side, and several items on the liabilities and equity side. What those specific items are, I only decide after taking a first look at the balance sheet of the company under review. It depends on the context.

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Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
6 سال پیش در تاریخ 1396/12/29 منتشر شده است.
58,770 بـار بازدید شده
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