They say that "numbers don’t lie," and while that may not always be the case, evaluating numbers is the best way for a business to gauge its performance and make plans for its future. In this 2-part series, viewers will learn two of the most important ways that businesses use numbers to monitor their success or failure. How to Read a Financial Statement covers the basics of reading and understanding business’s ultimate scorecard. Ratio Analysis covers the mathematical tools that businesses use to make the stats in a financial statement tell them stories. A coproduction of Films for the Humanities & Sciences and MotionMasters.
Includes the following individual titles (also sold individually):
- How to Read a Financial Statement (20 minutes)
In sports, the stat sheet shows who won and lost, as well as how or why each team won or lost. These numbers also tell coaches and players what they’re doing right and what they need to work on. In the world of business, that stat sheet is known as the financial statement—or simply “the financials.” The financials tell the owner or manager the same thing: what you’re doing right, what you need to work on and how your stats compare to your competitor’s. This video covers the basics of reading and understanding a financial statement. Click here for a preview clip.
- Ratio Analysis (19 minutes)
You can’t build a house without the right measuring tools to ensure that the structure is sound and won’t collapse: tape measures, protractors and levels are used to tell construction workers and architects how much material is needed and where everything goes. In the business world, the measuring tools are called financial ratios, and they help you evaluate a financial statement. By learning how to calculate and analyze specific ratios, you can evaluate trends, determine how healthy a business is, and have key indicators as to how the business is performing. They also allow you to make financial comparisons between companies. This video covers the ratios most commonly used to analyze a business. Click here for a preview clip.