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DataCamp Financial Forecasting in Python
Introduction to the balance sheet
FINANCIAL FORECASTING IN PYTHON
DataCamp Financial Forecasting in Python
Introduction to the balance sheet Victoria Clark CGMA Financial - - PowerPoint PPT Presentation
Introduction to the balance sheet Victoria Clark CGMA Financial - - PowerPoint PPT Presentation
DataCamp Financial Forecasting in Python FINANCIAL FORECASTING IN PYTHON Introduction to the balance sheet Victoria Clark CGMA Financial Analyst DataCamp Financial Forecasting in Python Types of financial statements DataCamp Financial
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DataCamp Financial Forecasting in Python
Assets and liabilities
Asset = Economic Resource Can be used to make money Liability = Economic Obligation Usually the obligation to pay something
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DataCamp Financial Forecasting in Python
Equity
Equity: portion of owner's interest in a property or business
equity = assets - liabilities # House example house_cost = 100000 down_payment = 20000 mortgage = 80000 tot_equity = house_cost - mortgage # Balance sheet
- wners_equity = assets - liabilities
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DataCamp Financial Forecasting in Python
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DataCamp Financial Forecasting in Python
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DataCamp Financial Forecasting in Python
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DataCamp Financial Forecasting in Python
SLIDE 9
DataCamp Financial Forecasting in Python
Let's practice!
FINANCIAL FORECASTING IN PYTHON
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DataCamp Financial Forecasting in Python
Balance sheet efficiency ratios - Part 1
FINANCIAL FORECASTING IN PYTHON
Victoria Clark
CGMA Financial Analyst
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DataCamp Financial Forecasting in Python
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DataCamp Financial Forecasting in Python
Debtors and creditors
Sell now, get paid later
debtors
Buy now, pay later
creditors
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DataCamp Financial Forecasting in Python
The debtor days ratio
How many days to receive payment from debtors Lower ratio is better Formula: Debtor Days = x DaysInFinancialY ear
Sales EndingBalanceDebtors
ddays_ratio = (debtors_end/sales_tot) * 365
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DataCamp Financial Forecasting in Python
Days payable outstanding (DPO ratio)
How many days to pay our creditors Higher ratio is better Formula: DPO = x DaysInFinancialY ear
TotalCostOfGoodsSold EndingBalanceCreditors
dpo = (creditors_end/cogs_tot)*365
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DataCamp Financial Forecasting in Python
Let's practice!
FINANCIAL FORECASTING IN PYTHON
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DataCamp Financial Forecasting in Python
Balance sheet efficiency ratios - Part 2
FINANCIAL FORECASTING IN PYTHON
Victoria Clark
CGMA Financial Analyst
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DataCamp Financial Forecasting in Python
Days in inventory
The inventory question: How much stock is too little, and how much is too much? How many days to sell our inventory Days in inventory ratio: DII = x DaysInFinancialY ear Desired level depends on the industry
TotalCostOfGoodsSold AverageInventory
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DataCamp Financial Forecasting in Python
Asset turnover ratio
Assets compared to sales generated Highly dependent on the industry Formula: Asset Turnover = Production company: high level of assets & low ratio Tech start up: low level of assets & high ratio
TotalAverageAssets Sales
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DataCamp Financial Forecasting in Python
Let's practice!
FINANCIAL FORECASTING IN PYTHON