professorsavings.com (http://www.professorsavings.com) a simple way to learn finance on youtube.
Financial Tips for Understanding
Financial statements can be hard to read if not for financial tips for understanding. They are actually supposed to be pretty clear but this isn’t quite the case. A balance sheet or a cash flow summary give you an idea of the actual numbers. A lot more detail is hidden in the statements’ footnotes. It is sounds simple but footnotes show a lot more than mere numbers. Accounting is well explained by them. Even the smallest of assumptions go in such reports and everything is listed. If you don’t have a degree to boast about, they you will definitely be having a hard time when it will to understanding these very footnotes.
But what could one possibly gain from these documents. Well first things first you will get to know clearly if the company is successful or not. Here are some financial tips for understanding:
1. If you don’t quite understand it, point it out. As someone who has invested in the company, you have every right to something that just doesn’t make sense. Make a call to the concerned department and get an explanation if any footnote requires further clarification.
2. You must depend on upon trends which set the pace for years to come and one year isn’t suffice. For understanding financial analysis, it is important to understand what has happened over the years. 55-10 years results will help you gain a clearer picture of the company’s earnings and abilities.
3. Depend upon footnotes of real importance and keep focus on the same. If you want to know how the company in question manages the cash flow so take a look at their long term plans for debt.
4. See beyond these statements! Depend upon trusted analysis done by reputed firms. Even brokers online have started providing reports of stocks for no charge. This a very good source of good analysis of how company is doing. Some of these reports will show results for at least 10 years. Comparison with the net and core net income is imperative.
5. Follow your instincts. Go with your gut. People would like to rely on reports which include annual analysis and statements of financial value. The truth is that trust and belief is more often not deserved. The annual report being read by the chairman usually does sound Smokey and botched up. It can be quite difficult to say what is sort of an obstacle you are facing in seeing the whole scenario clearly. If something doesn’t sound right, it might not be. Follow what your instincts say. Thanks for watching. Please help us grow.
Please “like” our video +
Professor Savings Channel (http://www.youtube.com/professorsavings)
Connect with us
Google + :
Pinterest (http://pinterest.com/professorsaving/) KEYWORDS professor savings professor saving all stock videos shares tips videos finance 101 lecture personal business smart beginner dummies basic learn 2013 ETF walmart money card profit clicking american funds mortgage rates pay down mortgage dividend stocks buy shares stock stock shares isa buy shares house rent owner orchard bank online payment mortgage rates pay down chase online my accounts today coupon mom today gold rate wells fargo jpmorgan chase capital one bank of america express citibank citi bank visa books blogs business ecommerce internet internet-tools multimedia self-improvement video videos blogging blog finance life money online mobile learning free cheap money cash Other Finance Youtube Channels
eHow Finance Youtube Channel: http://www.youtube.com/user/ehowfinance
Bloomberg Youtube Channel: http://www.youtube.com/user/Bloombeg
Kiplinger Youtube Channel: http://www.youtube.com/user/kiplinger
CBS Money Watch: http://www.youtube.com/user/moneywach
Disclaimer: Professorsavings.com makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.