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3 Minutes! Financial Ratios and Financial Ratio Analysis Explained (Quick Overview)

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OMG wow! So easy clicked here http://mbabullshit.com/ for Financial Ratio Analysis Explained Financial Ratio Analysis Explained in 3 minutes Sometimes it's not enough to simply say a company is in "good or bad" health... To make it easier to compare a company's health with other companies, we have to put numbers on this health, so that we can compare these numbers with the numbers of other companies... So now... how do we use numbers to assess company health? http://www.youtube.com/watch?v=TZZFBkbC2lA This is where Financial Ratios come in... Very common types of financial ratios are Liquidity Ratios, Profitability Ratios, and Leverage Ratios. Liquidity Ratios can tell us how easily a company can pay its debts... so that the company doesn't get eaten up by banks or other creditors. An example of this is the Current Ratio... This tells us how much of your company's stuff can be easily changed into cash within the next 12 months so that it can pay debts which need to be paid also within 12 months. The higher your current ratio is, the less risky a situation your company is in. Now moving on... Profitability Ratios can tell us how good a company is at making money. An example of this is the Profit Margin Ratio. This tells us how much profit your company earns compared to your company's sales. Normally, a higher number is better; because you want to earn more profit for every $1 of sales that you get. And finally, what about Leverage Ratios? These can tell us how much debt the company is using to make the company run and stay alive. An example of this is the simple Debt Ratio. This tells us how much % of a company's assets are paid for by debt. Normally, a company is considered "safer" when the debt ratio is low. Note that this was just a very simple overview. There are a lot more financial ratios & many different ways of using them; plus a lot of problems and disadvantages in using them as well. Would you like to SUPER easily learn more about many financial ratios with even deeper analysis & detail? Check out my FREE videos at MBAbullshit.com See ya there!
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Text Comments (163)
PREMRAAJ (2 years ago)
WELL YOU MAKE ME FEEL FINANCE SUBJECT IS EASY BECAUSE I WAS VERY SCARES ABOUT THIS SUBJECT BEFORE ! THANK YOU !
Alfonso Flores (1 year ago)
Mué8w9wwsica para a
Okke Mönking (1 year ago)
PREMRAAJ g
Rosemary Nti (1 year ago)
PREMRAAJ my dear same here . Was doubting myself if this course is right for me
MBAbullshitDotCom (2 years ago)
happy you're not scared anymore!
Shraddha Shrivastav (2 months ago)
Very nice video 👏👏
MBAbullshitDotCom (2 months ago)
A very nice thank you to you!
mrncy227 (3 months ago)
Best video on finance hands down.
MBAbullshitDotCom (3 months ago)
Thanks to you, hands down!
Ruby Lau (5 months ago)
I like how you only use simple vocab throughout this whole video
MBAbullshitDotCom (3 months ago)
Finance for General MBA (different from CFA/CFP) is very simple, no need for complicated language at all
sinntamang (6 months ago)
that seemed helpful,but just to make it more clear,is it safe to say,all Liquidity and Profitability ratios are always good with higher value and all Leverage ratios are good with lower values??
Vee Tech (8 months ago)
Well said, Thank you.
Princess PrettyFeet Asmr (10 months ago)
Great information 😱😱
MBAbullshitDotCom (10 months ago)
glad you liked the information!
Sarah B. (10 months ago)
The comments.......O_o
MBAbullshitDotCom (10 months ago)
LOL!
Andrea Barrera (1 year ago)
Hey
MBAbullshitDotCom (1 year ago)
Ya
Bev Sputler (1 year ago)
He's the oxy-moreno in chief lol
MBAbullshitDotCom (1 year ago)
LOL
phuong trinh (1 year ago)
Keep doing what you are doing. Thats really greattttt!!! subcribed.
MBAbullshitDotCom (1 year ago)
Thanks for the sub!
San Fran (1 year ago)
I didn't know Todd from Bojack Horsman provides financial ratios explanations
MBAbullshitDotCom (1 year ago)
But btw, I'm not asexual like Todd... I'm a BULL ;)
MBAbullshitDotCom (1 year ago)
LOL!
Rontai Williford (1 year ago)
Z690plllqww⌛ kip😂lol) [email protected]
Arthur Mulhern (1 year ago)
Useless bs
MBAbullshitDotCom (1 year ago)
LOL
Victoria A Ajang (1 year ago)
Amen
MBAbullshitDotCom (1 year ago)
Amen to you too and thanks!
Natasha Richards (1 year ago)
Things have become so much clearer. Brilliant simple explanation
MBAbullshitDotCom (1 year ago)
glad it's clearer now!
mukesh negi (1 year ago)
pls explain all chapters of part 3
Alex Cantlow (1 year ago)
I'm stupid when it comes to maths and find it really difficult to do but now see I need it to get anywhere in life and my future business life. I know I'm going to get laughed at for this but is there some simple ways to learn the basics first so I can learn this and grow. I'll keep looking though.
MBAbullshitDotCom (1 year ago)
For basic math I recommend the Youtube channel "mathantics"
Pawan Rangile (1 year ago)
u can also provide the lectures is in pdf form by providing particular pdf to in details of your videos on you tube.
MBAbullshitDotCom (1 year ago)
I have it, go to my website, not only Youtube, it's free
wan federer (1 year ago)
what software did u used to create this such beautiful video? :)
Senn Harderwijk (1 year ago)
. Mknihijhij
Elizabeth Harold (1 year ago)
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Magicus1 (1 year ago)
Thanks, mate! It was awesome, short, and clearly helped explain things!
MBAbullshitDotCom (1 year ago)
Glad you liked the explanation!
Blanca Gomez (1 year ago)
This was more useful than my college professor explaining it after 2 weeks!
MBAbullshitDotCom (1 year ago)
glad you found it useful Blanca!
Amjed Alderbi (2 years ago)
Very helpful, super simple, cute bull !
MBAbullshitDotCom (1 year ago)
Don't make the bull blush!
Rafaqat Hussain (2 years ago)
a simple way to understand financial ratio.very useful lecture
MBAbullshitDotCom (2 years ago)
happy you found it useful!
Maame Danquah (2 years ago)
I found this very understandable and easy to observe unlike other videos. Thanks 😁
MBAbullshitDotCom (2 years ago)
glad you found it easy, welcome
ossie spencer (2 years ago)
Thank you MBAbullshitDotCom. I like your videos.
MBAbullshitDotCom (2 years ago)
You're welcome and thanks for liking
Robert Z (2 years ago)
This helps to get ready for detailed study. I think a good overview is key to understanding the material later. Great video!
MBAbullshitDotCom (2 years ago)
glad you like it as an overview!
Ameya Patil (2 years ago)
your video is amazing. At the same time,the link below has another amazing video showing analysis of financial statements in detail. Thankyou
MBAbullshitDotCom (2 years ago)
glad you find it amazing!
Aswin Kailas (2 years ago)
thanxx
MBAbullshitDotCom (2 years ago)
welcomee
Niklaus (2 years ago)
Watching this right before my Business test, thanks for the vid
MBAbullshitDotCom (2 years ago)
Hope it helped!
Enjoy Music (2 years ago)
THANK YOU
MBAbullshitDotCom (2 years ago)
WELCOME!
Shyam Prasad (2 years ago)
Hi great videos...What software do you use for making these amazing videos
thembani simelane (2 years ago)
what is solvency
Joey Van de Giessen (2 years ago)
saai
James Perry (2 years ago)
super simple. thank u.
MBAbullshitDotCom (2 years ago)
glad you find it simple!
Sophear Khiev (2 years ago)
thx you sir, useful video, I found great to learn
MBAbullshitDotCom (2 years ago)
glad you found it great
Gaurav Kumar (3 years ago)
hey thanks for the bullshit!
MBAbullshitDotCom (3 years ago)
+Gaurav Kumar welcome!
Megha Syam (3 years ago)
nice
MBAbullshitDotCom (3 years ago)
+Megha Syam thanks!
Albert Witstraal (3 years ago)
Solvency Ratios?
Elizabeth Shutty (3 years ago)
I've seen two videos and already so pumped to watch them all
MBAbullshitDotCom (3 years ago)
+SESElizabeth enjoy watching them all!
GladioVeritatis (3 years ago)
Many thanks!
neckbonedaboss (2 years ago)
MBAbullshitDotCom
MBAbullshitDotCom (3 years ago)
+GladioVeritatis many welcomes!
Brandt McCall (3 years ago)
Hi there, a very good brush up for me. A key question I have is what if there is any the difference between the 5 year and one year PEG ratio. I have always used the 5 year as I like to get a good sense of projected potential growth, with a PEG 1 or below being favorable. For example American Waterworks a US water utility has a five year PEG of 3.0 at the moment which is far too high for me a value investor, and a forward PE of 22 to 24 depending on the price of the stock. But someone told me the a value of 3 for the 5 year PEG is good, but I was taught it should always be near or under 1. Thanks for any feedback.
Perfectsound (3 years ago)
Sir, can you please explain and upload the video for-Trade Credit Formula.The n=30,2/10,method.
reda dz (3 years ago)
well done dude you are a star thanks again
reda dz (3 years ago)
+MBAbullshitDotCom no worries mate but you are doing great job thanks again and keep doing it is really appreciate what you are doing
MBAbullshitDotCom (3 years ago)
+reda samy thanks for calling me a star!
ARIF KAZIMOV (3 years ago)
This kinda videos are showing us the most advantageous way of using Youtube. Thank you very much for sharing and educating!
Brendan Farr rc (1 year ago)
ARIF KAZIMOV July
MetallicStar Gaming (3 years ago)
+MBAbullshitDotCom ]o p
MBAbullshitDotCom (3 years ago)
+ARIF KAZIMOV me happy to be part of Youtube!
Aaron Lowe (3 years ago)
HA! I was nervously doing a search deciding whether I could cope with an MBA and found this site - I have never subscribed so fast to anything in my life . What a great channel!
MBAbullshitDotCom (3 years ago)
+Aaron Lowe thanks for the subscription!
Hazar Ahmed (3 years ago)
This is very helpful! Thanks, keep going! Im using this for my exams and I m from Norway :)
MBAbullshitDotCom (3 years ago)
+Hazar Ahmed glad to hear that all the way from Norway!
Hahahahah MBA bullshit. Awesome video!
MBAbullshitDotCom (3 years ago)
+Marcelino armuelles gordon and awesome thanks to you!
Aldridge Simon (3 years ago)
It's very helpful;D
Aldridge Simon (3 years ago)
thanks
MBAbullshitDotCom (3 years ago)
+Aldridge Simon glad you find it helpful!
Hà Ngô Trần Việt (3 years ago)
could anyone please tell me which program is used to create this clip? I love the way it is organized so much :P
Jon Nash (3 years ago)
This video does an excellent job at keeping the topic SIMPLE. For a brief intro to ratio analysis, this is at the top of my list! Nice work.
MBAbullshitDotCom (3 years ago)
+Jon Nash glad you find it simple!
Adam Yunker (4 years ago)
That ending got me 😂
MBAbullshitDotCom (4 years ago)
+Adam Yunker Hee hee
Telipuff puff (4 years ago)
600th like whoop whoop!! from London currently studying level 4 AAT
sanjay bisht (2 years ago)
Telipuff puff
MBAbullshitDotCom (4 years ago)
+telisha downer hope all is well with you in London!
Aya Gomaa (4 years ago)
Nice :)
MBAbullshitDotCom (4 years ago)
+Aya Gomaa Thanks :)
purposedpa (4 years ago)
I'm subscribing!
Sank Patterson (1 year ago)
purposedpa I r was
purposedpa (4 years ago)
+MBAbullshitDotCom No prob! Thanks for the informative videos!
MBAbullshitDotCom (4 years ago)
+purposedpa thanks for the sub!
NARFX FK (4 years ago)
Lol fav channel... teacher played one of your vids in class... eppic MBA BULLSHIT at the end of the vid hahahaha
MBAbullshitDotCom (4 years ago)
+NARFX FK an epic thanks to you you!
mobai123 (4 years ago)
the debt ratio = ( assets - equity ) / assets, but is assets - equity = liability ? If so can it be liability / assets ?
Koike jin (3 years ago)
yes
TheDark Knut (4 years ago)
Awesome! Thank u. :)
Paul Shu Chun Wong (4 years ago)
Thank you very much, it is very useful!!!!
MBAbullshitDotCom (4 years ago)
+Paul Shu Chun Wong glad you find it useful!
ben sepp (4 years ago)
Can anyone help me calculate a companies "earnings stability", a link or formula would be very helpful. Maybe there is a more commonly used name that I'm not aware of, any help would be appreciated.
superb bass very nice
MBAbullshitDotCom (4 years ago)
+yarra Sravan Kumar reddy happy you find it nice!
alltimejust (4 years ago)
You really have to start putting the next video link in your description or something! It's really "bullshity"  to have to look for is in the ling list of video you got!!!!!!!
MBAbullshitDotCom (4 years ago)
LOL
Hifaz Hamza (4 years ago)
I finished my degree in finance recently, I just found out these videos now. Pretty cool collection. Subscribing you! 
MBAbullshitDotCom (4 years ago)
+Hifaz Hamza congrats on your degree!
Saeed Alhamlan (4 years ago)
Big LIKE boss ^_^
MBAbullshitDotCom (4 years ago)
+Saeed Alhamlan Thanks, Boss!
kaYcestYler (4 years ago)
Wow so easily explained!
MBAbullshitDotCom (4 years ago)
+kaYcestYler glad you found it easy!
DegustHD (4 years ago)
+MBAbullshitDotCom Is there on certain number you look at to determine which company is the best if you are comparing four different company's?
David bond (4 years ago)
Thanks for this, doing CIPS level 4, this has help me :-)
MBAbullshitDotCom (4 years ago)
+David bond good luck in your CIPS 4 !!
steven rey Porquiado (4 years ago)
Thank u MBA bullshit for sharing your knowledge. More power to you!!!
MBAbullshitDotCom (4 years ago)
+steven rey Porquiado welcome and more power to you too!
Iven Tu (4 years ago)
fantastic
Ruth Bosibori (4 years ago)
lmao MBAbullshit .Thanks!
MBAbullshitDotCom (4 years ago)
+Ruth Bosibori  lyao even more. You're welcome!
Ferenkeh koroma (4 years ago)
grate helping with myexams
MBAbullshitDotCom (4 years ago)
+Ferenkeh koroma good luck in yourexams!
Stepheon Coles (4 years ago)
Awesome way to share knowledge. I have spent the last couple of days staring at a  text book learning nothing. Thanks!!
MBAbullshitDotCom (4 years ago)
+Stepheon Coles welcome~! And I hope your 'nothing' is now 'something' cheers
jacob joseph (4 years ago)
ur awesome !!!
MBAbullshitDotCom (4 years ago)
+jacob joseph Lol !
jacob joseph (4 years ago)
+MBAbullshitDotCom just was searching on the topic...went through your website too, pretty neat...only if i could see the whole content ;) ....just kidding...good job, keep it up
MBAbullshitDotCom (4 years ago)
Awesome thanks +jacob joseph , how'd you find us?
John Kettle (4 years ago)
lol 11 hours until my exam, so thank you for being here for me
MBAbullshitDotCom (4 years ago)
Wow hope you did fine in your exam +Riaz Murad !
Pablo Reyes (5 years ago)
Easy to understand, practical!
MBAbullshitDotCom (5 years ago)
+Pablo Reyes thanks for the share!
bajan256 (5 years ago)
Gosh dude where was your channel last semester lol... Sending u greeting at applause from Barbados
MBAbullshitDotCom (5 years ago)
+bajan256 LOL hope it's not too late for ya
MBAbullshitDotCom (5 years ago)
@Patrick much gratitude to you too! @ThaiNguyen, glad you like the subtitles! @Anand I'm flattered that you shared my channel!
Rosita van laarhoven (2 years ago)
MBAbullshitDotCom credo
Marisol Mariajuana (4 years ago)
😅😤😤 B😆😃☺💩🔚🔚🔚🔚🔚🔚🔚🔚♋oom lk7uuooo rey SSA q mil cg😆😃☺ ni un
Arvind E (4 years ago)
Ccuj
MBAbullshitDotCom (5 years ago)
@Patrick: May much abundance go your way too!
Patrick Greenaway (5 years ago)
Much gratitude for your abundance. Great stuff!
Internet Highlights (5 years ago)
great job sir , especially the english subtitle!
Anand Johnson K (5 years ago)
Liked. Sharing this channel now.
MBAbullshitDotCom (5 years ago)
@Arnold Wow! Regards to you all the way in Kenya
Arnold Ndanyi (5 years ago)
I am your number one fan David! Mad thanx from Kenya
MBAbullshitDotCom (5 years ago)
@Marcelo Wow, first time I've been called 'phenomenal'! :p

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