We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- Essential items to look at under the P&L are;
- Revenue
- -Heavy Expenses
- -Tax Rate
- -PAT
- Essential Items to look at under the Balance sheet are;
- -Long-term Borrowings
- -Accounts Receivable
- -Cash in hand/Bank
- Profit after Tax flows from P&L to Balance sheet.
- Cash & Cash Equivalents flow from the Cash Flow Statement to the Balance sheet.
This was so helpful. Thanks alot!
In the summary of the video, under the Cashflow statement box (@4:12), the first line item should be “Operating Activities” instead of “Balance Sheet”, it must have been a typo. Thank you, Karthik and team Zerodha for all your efforts in making such content available.
Ah, thanks of pointing that RObin. Not sure if we can edit that now. But I hope can figure its a typo 🙂
Sir could you please tell me how to calculate at what percentage the company has taken the loan?
But as a percentage of what do you wish to calculate?
Sir you have explained in the video the finance cost part, that’s what I am not able to understand that how do I calculate at what percentage the company has taken its long term loans or borrowings? ( Like in balance sheet finance cost states that it is the interest amount paid by the company. So I want to know the figures or amount from which that finance cost has been calculated and written there.)
For that, please check the notes or schedule associated with the liabilities. The notes will give you a detailed split.
Very good teaching. Nice presentation with example.
Happy learning!