Reading Financial Statements

We can look up to companies as living organisms, like people are.

So, as people, companies can get sick, they can be bleeding out cash, they can get an inefficiency or bureaucracy virus that spreads across the different departments or even a tumor business unit that needs removal before it kills the whole company!

And even when they are not sick, companies need constant check-up and need to monitor their vital signs and functions. That’s why companies run periodical tests like Balance sheets, P&L statements, Cash Flow Analysis…etc all those financial documents that you may already heard about. Those documents are really important to the managers that run the company, and they are very important to the business owners and investors that assume the risk of putting their money into the company, and also very important to the banks that lend money to them!

So, instead of blood tests, X-rays and, ECG…etc companies go under financial documents preparation and release them periodically. As a manager or a businessman you should:

• Know what these documents are;

• Know how to read them and interpret them;

• In order to find out opportunities for improvement!

These are the goals of this class!

I hope it helps you and it helps your business!