You’re in charge, you’re it, and I’m sure you know that only too well. Among the many things you need to understand about the business, its financial performance is right up there. You need a good handle on revenues and costs (Income Statement or Profit & Loss Account), capital invested and how it’s been used (Balance Sheet) and the cash flows (Cash Flow Statement). More than that, though, you also need to understand financial performance more deeply, including the trends and key ratios and how the business compares with others in the industry. No doubt someone is providing you with Analysis of the Financial Statements, maybe the CFO, but you need to understand what this is telling you and its significance. It’s you who has to front the board and the bank and justify the performance to the shareholders at the AGM. You don’t want to be embarrassed by showing a poor understanding in front of your senior people; you’d much rather be leading the discussion confidently and asking searching questions to keep them on their toes. Knowing your way around Financial Statements as these Finance Courses teach is a must.