Financial statements need not be an impenetrable web of numbers. Analysis can be both simple and logical. Whether you are an investor, lender, supplier, customer, or acquirer, basic financial analysis can save you painful losses and win you big profits.

Professor George Parker provides both lineby-explanations of the three key financial statements used by US companies and logical, common-sense approaches to interpretating what they reveal about value, profitability, and baility to pay bills.

The Balance Sheet

- What does tis company own?

- How much dept is it carrying?

- How much money have investors put in?

The income Statement

- What is the sales volume?

- What kinds of expenses is the company incurring?

- Bidding strategies - Identify the hidden messages behind bids and offers

- How much money is the company earning?

- Which income figure should I look at : operating income, income before interest and taxes, or net income?



The Cash Flow Statement

- Will this company be able to pay it's bills?

- Where's their cash flow coming from?



A Tale of Two Restaurants...



Follow along as Dr. George Parker tracks the progress of Jill and Perry, non-financial managers assigned to evaluate the financial statements of two restaurants their company has targeted for acquisition. learn not just textbook definitions, but real world meanings and business consequences.

The Stanford Video Guide to Financial Statements comes with one free study guide (63 pages). In addition to reviewing terminology and concepts presented in the video, the study guide explains and provides examples of ratio analysis; compares accelerated, straightline, and units-of-production methods of depreciation; and contains a glossary of accounting terminology.



Featuring : Dr. George Parker, Associate Dean for Academic Affairs Dean Witter Professor of Finance and Management, Director of MBA Program Stanford Graduate School of Business.