Episode 6: Financial Statements

In this episode, we focus on the importance of financial statements in assessing a business’s performance and guiding decision-making. We break down the key components of the income statement (profit and loss account) and the statement of financial position (balance sheet), explaining how they reveal a business's financial health.

Using practical examples, including BrewBliss, we demonstrate how to calculate and interpret gross profit margin and net profit margin, helping businesses make judgements on their performance over time, against competitors, and from different stakeholder perspectives. We also discuss the critical difference between assets and liabilities and how the statement of financial position provides a snapshot in time.

By the end of this episode, you’ll understand how financial statements are vital tools for businesses, showing whether they are thriving—or just surviving.

Credits: Audio and AI assistance powered by Google Notebook LM.

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