“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffet
No company can ever be into business without interpreting customers’ balance sheets. What is a Balance Sheet?
Balance sheets are financial statements that provide an overview of what a company owns and owes. It also displays the amount invested by shareholders.
All credit analysts need to work on balance sheets to calculate financial ratios and profit and loss statements. But what purpose do the profit and loss statements serve, and why is it so important? The profit and loss statement summarizes the revenues, costs, and expenses incurred during a specified period.
The complete course on P&L, balance sheet, and cash flow statements would help you in understanding a company's financial performance.
This tutorial has been designed for a trade credit analyst and gives an overview of the components of a balance sheet. They also provide detailed knowledge of what assets, liabilities, and equity are in a balance sheet.
Watch this complete course to unlock the P&L formulas for decoding the measure of profitability while doing business.
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