FinanceBeginnerAR · EN

Reading Financial Statements for Non-Financial Managers

Understand what the numbers actually say about your business, and where they mislead you

4.7 (118)1,034 learners10 lessons2 h 21 min

Instructor

Dr. Salim Al Harthy

What you will be able to do

  • Identify which of the three statements answers the question in front of you instead of scanning the whole file
  • Explain the gap between accounting profit and available cash, and trace it to specific line items
  • Compute the cash conversion cycle for your unit and translate its days into frozen rials
  • Compute five ratios and read a bad value as an operating problem with an owner and a fix
  • Pull hidden commitments and risks out of the notes before signing a contract or a budget

About this course

A practical course for people who make operating decisions without an accounting background. It covers what each of the three statements answers, why profit and cash diverge enough to bankrupt a profitable company, how working capital works, the handful of ratios worth computing and what a bad value means operationally, and the notes that change the picture. Built around a worked example in Omani rial at three decimals.

Course content

The Three Statements and What Each One Answers

Profit Versus Cash and Working Capital

  • Profitable and Broke: How It Happens18 min
  • The Working Capital Cycle in Days and Rials17 min
  • The Thirteen Week Cash Forecast14 min

Ratios and the Notes

  • Five Ratios Worth Computing and What They Mean Operationally18 min
  • The Notes That Change the Picture16 min
  • The Manager's Routine: Thirty Minutes a Month13 min
  • End of course quiz10 min