Join Rudolph Rosenberg for an in-depth discussion in this video What you need to know, part of Financial Analysis: Introduction to Business Performance Analysis.
In this course, we will be looking at the P&L from a bird's eye view, and cover the key concepts that need to be mastered before diving into the more detailed understanding of top line and bottom line performances. To get the most out of this course, you need to have at least a basic understanding of what a P&L is, and how it fits into the financial statements of a company. If you're not familiar with a P&L, or if you feel you could use a refresher on the subject, then I would recommend that you take a look at the course Financial Literacy: Reading Financial Reports in the lynda.com training library.
Also, this course will likely touch on some accounting concepts. But you don't need to have any knowledge of accounting to follow this course. You should know though, that this is not an accounting course, and as such, I strongly advise you to consult with a certified accountant if you have an accounting question. Also note that in this course, we will be entirely focused on getting useful insights from our analysis, even if it means deviating from traditional finance to get closer to the business reality.
This course, the first in our Financial Analysis series, introduces you to key concepts of business performance analysis. Author Rudolph Rosenberg focuses on the analysis of the profit and loss (the P&L) statement and on the key dynamics you need to understand in order to interpret the performance of your business. Understanding this data will help you make informed decisions that benefit your company in the long run.
Get started now with this quick primer. When you're ready for the next steps, check out Financial Analysis: Analyzing the Top Line with Excel and Financial Analysis: Analyzing the Bottom Line with Excel.