How To Analyze Financial Statements For A Corporation. 4 Types of Financial Analyses

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The Financial Controller

The Financial Controller

Күн бұрын

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00:00 Agenda
00:41 Accounting vs. Managerial Analysis
4:00 Horizontal Analysis
10:32 Actual vs. Budget
14:38 Vertical Analysis
18:08 Ratio Analysis
In this video I cover the most common types of financial analyses used by Controllers and Financial Analysts.
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All views expressed on my channel are mine alone. Not intended as financial or professional advice

Пікірлер: 122
@TheFinancialController
@TheFinancialController 21 күн бұрын
Level up your Accounting Career by enrolling in our 6-weeks program here controller-academy.com/courses/controller-academy
@devannorton4825
@devannorton4825 Жыл бұрын
Thank you for your very informative videos. I am 38 and just now getting a college education. I have chosen to get a bachelors in accounting and want to pursue an MBA in finance... I will try to get a CPA as well. It feels like a long ladder to climb. I wish I had had the opportunity much sooner. But, better late than never!
@DaxL_net
@DaxL_net Жыл бұрын
Education is long life thing to improve one's knowledge
@oiinahgiiusadurrybrahchuck7209
@oiinahgiiusadurrybrahchuck7209 Жыл бұрын
I got a late start to finding direction and your comment is inspiring. Based on my researching into career pathways I think if you are aiming for ba. in accounting and MBA finance then you are perfectly capable of completing CPA too. Stay focused, remember your reasons for your efforts, don’t be too hard on yourself if faced with any setbacks but also stay grounded in your ambitions, best of luck!
@mmiller7203
@mmiller7203 Жыл бұрын
I saw your comment and wanted to send some encouragement, I completed the CPA exams in 2021 and got my certificate last year. I am turning 50 (July 3). So keep climbing until you achieve your goals. All the best!
@devannorton4825
@devannorton4825 Жыл бұрын
Thank you all for your kind words! And I wish you all the best as well
@deutschnacharabischemgeschmack
@deutschnacharabischemgeschmack Жыл бұрын
I wish you all the success in the world. It is never too late if you are still breathing. 🎉
@cefimssoas9830
@cefimssoas9830 Жыл бұрын
I studied this like 20 years ago , but never got to practice it in real life and now I just feel like a complete financial illiterate, thank you for saying it in simple terms
@xuamox
@xuamox Жыл бұрын
It would be great if you did a video going over financial statements for Apple, Meta, Microsoft, etc and go over all the line items and explanations. Great videos!
@fangyingzhao3388
@fangyingzhao3388 Жыл бұрын
Thank you Bill for sharing this informative video!
@tuananan79
@tuananan79 Жыл бұрын
Thank you for your sharing,it helps me to understand more on finance and analysis. Your detailing is on the dot and easy to learn,less jargon that makes it more easier.Keep it up,I will share w my friends your videos.
@jocelynrucker6877
@jocelynrucker6877 Жыл бұрын
This is so concise…thank you, thank you, thank you. For someone who is new to bookkkeeping & failed accounting 3 times in college, it makes me second guess myself. Thing is I do the books for my husband’s new business so I have no choice…you truly add value!
@AymenMaouetiFreelancer
@AymenMaouetiFreelancer Ай бұрын
Thank Bil Like always your the best, I have been following you since 2 years and I have learned a lot from you
@mangobyte924
@mangobyte924 Жыл бұрын
Hi Bill Hanna! This informative video is very helpful for my career improvement. Thanks for sharing your knowledge, Keep it up!
@hackit9578
@hackit9578 Жыл бұрын
Hi Bill , thank you for another great video. I have learnt so much from your video. Please don't stop making them. 😊 Kesh 🇬🇧
@mosaradwan
@mosaradwan Жыл бұрын
Thank you for sharing this knowledge
@Sisi88991
@Sisi88991 Жыл бұрын
Thank you! Very helpful!
@tshephomonamesi2757
@tshephomonamesi2757 Жыл бұрын
This is a good analysis, I enjoyed it.
@rasheednayakkan6750
@rasheednayakkan6750 Жыл бұрын
Thank you Controller. Informative, simple and useful video :)
@TheFinancialController
@TheFinancialController Жыл бұрын
Thanks Rasheed
@user-lk4zy5ro7p
@user-lk4zy5ro7p Жыл бұрын
thanks for the video, it simple and straight to the point. i haven't seen the link you promised to share
@shruthiswaminathan2907
@shruthiswaminathan2907 Жыл бұрын
Thank you so sooo much! Informative yet succinct 🙏🏼
@HamzaRagab
@HamzaRagab Жыл бұрын
Thank you for valuable information
@chothar5453
@chothar5453 2 ай бұрын
Sir, thank you so much for your informative video.
@atiqrehman1223
@atiqrehman1223 Жыл бұрын
thanks for your work
@nizamrasooly86
@nizamrasooly86 Жыл бұрын
Thanks for sharing your knowledge with us, I am watching your videos from Afghanistan and almost watched all your uploaded videos
@okohlawrence2466
@okohlawrence2466 Жыл бұрын
Great videos well-done sir
@lmwold
@lmwold Жыл бұрын
Always find your videos of good value for my time, good ROI.
@TheFinancialController
@TheFinancialController Жыл бұрын
Thanks very much!
@lucamura1303
@lucamura1303 Жыл бұрын
Kudos and thank you for all these videos! I would love to see you do this kind of analysis on financial and/or insurance companies as well.
@TheFinancialController
@TheFinancialController Жыл бұрын
Thanks Luca!
@ronniediaz5027
@ronniediaz5027 Жыл бұрын
Thank you! This is very informative. A great presentation and very helpful not just for small business owners but for those who want to learn how to read financial statement too.. Kudos..
@TheFinancialController
@TheFinancialController Жыл бұрын
Thanks Ronnie!
@SuperAquababe
@SuperAquababe 3 ай бұрын
This video was very insightful , thank you 🙏🏽
@TheFinancialController
@TheFinancialController 3 ай бұрын
Glad it was helpful!
@rahulratna3547
@rahulratna3547 Жыл бұрын
This guy is awesome 👍
@shadebeckybabalola6836
@shadebeckybabalola6836 2 ай бұрын
Thank you so much controller I really learn a lot from you.
@TheFinancialController
@TheFinancialController 2 ай бұрын
Glad to hear that!
@DreamFirms
@DreamFirms Жыл бұрын
Such informative videos you have on this channel. Just subscribed!
@veecouture8202
@veecouture8202 Жыл бұрын
You provide such rich resources on your channel. I wish I had you as a professor while I was in business school.
@TheFinancialController
@TheFinancialController Жыл бұрын
Thank you Vee
@marvelouss719
@marvelouss719 Жыл бұрын
Vee Couture, Where did you go to school? I went to a private catholic university and my accounting professors were great teachers. In fact, the school also ranks #1 for passing the CPA exam.
@alexrosen8762
@alexrosen8762 Ай бұрын
Extremely valuable tutorial 👌
@TheFinancialController
@TheFinancialController Ай бұрын
Glad you think so!
@azizkhan938
@azizkhan938 3 ай бұрын
Very insightful, it refreshed my knowledge of financial analysis.🙂
@TheFinancialController
@TheFinancialController 3 ай бұрын
Thank you!
@levelynlazarte5185
@levelynlazarte5185 Жыл бұрын
thank you so much too much helpful to my actual work presently
@TheFinancialController
@TheFinancialController Жыл бұрын
Glad it’s helpful Levelyn!
@danielcarrasco300
@danielcarrasco300 Жыл бұрын
Thanks a lot! Great Job
@TheFinancialController
@TheFinancialController Жыл бұрын
You're welcome!
@saurabhgoel9323
@saurabhgoel9323 Жыл бұрын
Hi I am CMA thanks for great information
@alassanekane4269
@alassanekane4269 Жыл бұрын
Thank you 🙏🏽
@PhillimonNdeule
@PhillimonNdeule Жыл бұрын
This is helpful
@MohamedMohamed-ub7lb
@MohamedMohamed-ub7lb Жыл бұрын
Boss your the best
@vilaswalekar5413
@vilaswalekar5413 9 ай бұрын
Very informative and insights videos...
@TheFinancialController
@TheFinancialController 9 ай бұрын
Glad you think so!
@sheryhelendesigns
@sheryhelendesigns Жыл бұрын
Accounting isn't my background exactly although Financial Managerial Analysis is we still work with accounting as we manage accounts. I am ssssssssssssssuper excited to run into your channel. When I studied Finance a few years ago it was really hard to find other resources that help break down FS. You have to find multiple outlets to help grasp the concepts in your studies, well at least I needed it. I can't find anyone local that tutors in this stuff specifically or to brainstorm with. Hands on is always the best way to get better at what you do and I am still learning while just a year of working fully on financials. I'm new to your channel and looking forward to watching many of your videos. Thank you. Keep'em coming!!!!!
@TheFinancialController
@TheFinancialController Жыл бұрын
Thank you so much!
@ikotuntaiwo7340
@ikotuntaiwo7340 Жыл бұрын
Hello you’re from what country ?
@arpandoshi9878
@arpandoshi9878 8 ай бұрын
Please create video on functioning of ERP in accounting systems
@emmanueltaunou4421
@emmanueltaunou4421 Жыл бұрын
Hi Bill, I'm a big fan of your channel as I am a Accountant by profession but with little experience (Just graduated recently. Bachelor in Accounting from the Premium University of Papua New Guinea) Can u make a Video on How to prepare a Tax Return please.
@piytube1
@piytube1 Жыл бұрын
Good
@ashchilly
@ashchilly Жыл бұрын
You're the best, you know that right?
@MrAl158
@MrAl158 6 ай бұрын
In the detailed Ratio Analysis dashboard at 20:37 isn't it better to call them "Threshold Churn %" and "Threshold CAC %" . The green highlight certainly points to positive outcomes, but calling them "Targets" seems a little confusing at first...very informative video. thank you!
@eliasabdissa9406
@eliasabdissa9406 Жыл бұрын
Thank you for the lesson where we can get the excel type pls leave for us to practice more and get good experience of it
@barajas3309
@barajas3309 10 ай бұрын
Can you do videos about cost accounting.
@mayacargo9548
@mayacargo9548 Жыл бұрын
Headcount? Never head of this analysis
@amiramir-bh5dk
@amiramir-bh5dk 9 ай бұрын
Thanks for the great video, I don't get it Where are those numbers related to headcount coming from? Is that the result of total income - total expense? any thoughts? Thanks
@KhalelFx
@KhalelFx 4 ай бұрын
how do you set up the head count?
@wiemluna1205
@wiemluna1205 Жыл бұрын
Hi Bill, I'm so glad I found your channel. I've been considering a change in career from my current paralegal work to becoming a CPA - which has always been a dream of mine - and your channel has the most valuable content on this topic. I have a business management degree with a low GPA (3.1). I plan to get a certificate in accounting (and maybe a Master of Professional Accounting, per your advice in another video, if I get accepted into the program) and study for the CPA exam. In the meantime, do you recommend that I find an entry-level accounting job that does not require relevant experience or education? Or should I wait until I get my CPA license before looking for a job in accounting?
@TheFinancialController
@TheFinancialController Жыл бұрын
Hi my own preference would be to start in Accounting sooner to get hands on experience
@masoodkhan294
@masoodkhan294 Жыл бұрын
Thank you for your informative vedios ,could you please share this file in pdf with us appreciated 😊
@DzyBzy-nl3wz
@DzyBzy-nl3wz 11 ай бұрын
Hi Bill great channel. I’m very keen to learn more. Can you pls provide the academy link?
@TheFinancialController
@TheFinancialController 11 ай бұрын
thefincontroller.com/p/controller-academy
@rajkumarvelupillai1447
@rajkumarvelupillai1447 Жыл бұрын
Should analyse FED like a pro. As they control the money flow in and out of Stock market 🤑💰
@princesslynneciervoguzman6082
@princesslynneciervoguzman6082 Жыл бұрын
Hello sir, wht does it imply if the quick ratio is infinity?
@arpandoshi9878
@arpandoshi9878 8 ай бұрын
How to manually calculate COGS for a manufacturing firm ?
@AliAkbar-bf1md
@AliAkbar-bf1md 4 ай бұрын
Sir, What should I learn to be a financial Analyst (Excel).?
@Rich1Rodriguez
@Rich1Rodriguez 11 ай бұрын
I am looking for a free Excel spreadsheet to enter balance sheet and income, statement and shareholder equity and then do the analysis, including valuation. Any suggestions ?
@mohinshah3004
@mohinshah3004 11 ай бұрын
can you please state calculation of headcount in this video
@suzy5166
@suzy5166 Жыл бұрын
Sum up very well 🧡 thanks 🙏
@ramizabdulahad8419
@ramizabdulahad8419 Жыл бұрын
Hi Bill. Thank you for the video. Speaking of accounting errors, how do you make sure you recorded every vendor invoice? I receive invoices on my email and I've missed entering few of them in the system a couple times. Then I get notified by my manager that I missed them. Do you have a procedure on that?
@TheFinancialController
@TheFinancialController Жыл бұрын
The only sane way of doing this is to implement a Purchase Order process. If you know at month end a list of open POs, then you can ensure to follow up with vendors or accrue for them.
@doctnita
@doctnita Жыл бұрын
Hi Bill Can you please share those excel files if possible so I can follow along Thank you in advance
@DimitriGaldava-yi1rz
@DimitriGaldava-yi1rz 6 ай бұрын
Have a question! dont we have to devide the variance on the budget? not on actual. 12% variance is coming from the variance over the actual. we are figuting aout against budget. no? also, How Variance is negative if you where under the budget. your actual is lower than a budget.
@FahmeDeen313
@FahmeDeen313 Ай бұрын
please also share excel file for practice.
@chsfbrr
@chsfbrr 6 ай бұрын
@The Financial Controller Hello Sr, hope you are well! Sorry, didn't understand how you formulate the headcount. Could you explain? Thank you in advance
@sinthiadassi1354
@sinthiadassi1354 4 ай бұрын
He too
@christianbravo8263
@christianbravo8263 Жыл бұрын
How did you come out with those numbers in the headcount? Please explain 🙏🏻
@TheFinancialController
@TheFinancialController Жыл бұрын
You would get it from your company's HR information system or ask HR team for it
@zhyarjalal4179
@zhyarjalal4179 7 ай бұрын
Can i pay a professional analyst to analyze the whole company statements for me ?
@tuananan79
@tuananan79 Жыл бұрын
Can someone tag me the link for the excel sheet?thanks
@MrBlackjack456
@MrBlackjack456 9 ай бұрын
Title: "Financial Statement Analysis Types: A Guide for Corporate Controllers" Summary: In this video, financial controller Bill Hannah provides an insightful overview of financial statement analysis, explaining the four main types of analysis used by corporate controllers. These analysis types are crucial for understanding a company's financial health and making informed business decisions. The key points covered in the video include: 1. Accounting Analysis: - Focuses on finding accounting errors in financial statements. - Commonly involves month-over-month horizontal analysis to detect discrepancies. - Goal is to identify and rectify accounting mistakes. 2. Actual vs. Budget Analysis: - Compares actual financial results to budgeted figures. - Helps in evaluating performance against financial targets. - Aids in decision-making by assessing budget adherence. 3. Vertical Analysis: - Examines line items on the income statement as percentages of total revenue. - Evaluates the trend and proportion of various expenses relative to revenue. - Highlights areas where expenses may be increasing disproportionately. 4. Ratio Analysis: - Compares two financial figures, such as current assets and current liabilities, as ratios. - Common ratios include current ratio and debt-to-equity ratio. - Provides insights into liquidity, solvency, and overall financial stability. Bill emphasizes the importance of setting commentary thresholds to focus on significant variances in the analyses. He also shares his preferred analyses, with accounting and actual vs. budget analyses being the most commonly used. This video is a valuable resource for finance professionals, particularly corporate controllers, seeking to gain a deeper understanding of financial statement analysis techniques.
@TheFinancialController
@TheFinancialController 9 ай бұрын
Thanks for the summary!
@MrBlackjack456
@MrBlackjack456 9 ай бұрын
@@TheFinancialController It will help people to recap.
@Ourdirtytwo
@Ourdirtytwo Жыл бұрын
Learn this! Dollars will NEVER DIE
@keyatia6657
@keyatia6657 5 ай бұрын
👍
@nogoogle6349
@nogoogle6349 Жыл бұрын
Good job. Are you Chicano?
@TheFinancialController
@TheFinancialController Жыл бұрын
grew up in the Middle East
@bhavneshparikh8283
@bhavneshparikh8283 Жыл бұрын
Provide this excel file?
@user-ny7lj9uk8q
@user-ny7lj9uk8q 10 ай бұрын
Would like to know the meaning of head count
@TheFinancialController
@TheFinancialController 10 ай бұрын
Means number of employees
@larrygilbert2901
@larrygilbert2901 Жыл бұрын
I'm confused on the INCOME STATEMENT model structure. Why is 401k employer match, Medical Insurance, Customer support Salaries, Payroll Tax under COGS? Aren't those suppose to be part of Expenses? SG&A.
@TheFinancialController
@TheFinancialController Жыл бұрын
Salaries/benefits of 'customer support' are considered "Cost of Sales/Cogs" in a software/service company
@ltran6535
@ltran6535 Жыл бұрын
🙂
@logic484
@logic484 Жыл бұрын
Hey Bill I sent you an email regarding a take home assessment help!
@Matthew8473
@Matthew8473 6 ай бұрын
This content is a revelation. I read a similar book that was a watershed moment for me. "Mastering Money Mindfulness" by Benjamin Hawk
@MahgoubAdnan
@MahgoubAdnan Жыл бұрын
ACCOUNTING ANALYSIS Purpose : To Find Accounting Errors Used : Horizontal Analysis FINCIAL ( MANAGRIAL ) ANALYSIS Purpose : To Help Make Business Decisions Used : 1-Actual Vs Budget 2-Vertical Analysis 3-Ratio Analysis
@abdellatifelnegiry7166
@abdellatifelnegiry7166 Жыл бұрын
Way over
@theknotteddragon
@theknotteddragon 10 ай бұрын
I love your videos, they have been helping me through interviews! Do you have a Discord Server?
@Samskrithii
@Samskrithii Жыл бұрын
Hello Bill Hannah, which books are best for CPA preparation : BECKERS or CPA WILEY exam books or some other brands ? Which one did you use.? Can you please make a video about your exam prepartion strategy and how you cleared the CPA exam ? Thankyou.
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