Here is what Mr. LS Chauhan, a tribesman, wrote as a comment on my latest post on Opto Circuits – “Could you please consider taking OCIL balance sheet as an illustration while you post your next lesson on ‘How to read a balance sheet’.”
So here is a video I have prepared to help you understand the Balance Sheet, and through the example of OCIL’s balance sheet. 🙂
Since explaining how to analyze a complete balance sheet would have taken a lot of time, in this video I explain how to look at the “Equity & Liabilities” side of a balance sheet. I will take up the rest of the analysis – of the Assets side – in a subsequent video.
Anyways, as they say, to know how good a job a manager did, you have to have a good idea how much risk he took.
In the same way, to know how good a business a company is doing, you have to have a good idea how much risk it carries on its balance sheet.
The “Equity & Liabilities” side tells you exactly that.
So watch the following video and get into a lifelong romance with the balance sheet.
If you can’t view the video above, click here. Please don’t forget to turn on your speakers.
In case you are not able to see a clear video, just click to play the video and then change the quality to 480p or 720p (Click here to know how).
Let me know if you found the analysis easy (or difficult).
Post your feedback or any question you have in the Comments section below. I’m all ears.
By the way, I have relaunched the Safal Niveshak Forum…this time on Google Groups. You can sign in and start contributing to the Forum by clicking here.
Note: Many tribesmen have asked me how they can download the videos and see them at ease. Well, you can do this through Freemake Video Downloader, which you can download for free on your PC.