As a General Manager you have responsibility for a large part of the business but you must coordinate your area’s activities with those of other areas. You must understand not only the finances of your own patch but also those of the whole business and the impact your area makes on it. After all, the idea is to maximise returns for the whole business, not just those of your area.
So, you must be able to explain and Analyse your Financial Statements in the context of those of the whole business. Your decisions may impact not just on revenues and costs (Income Statement/Profit & Loss Account) but also on assets, liabilities and capital (Balance Sheet) and on cash flow (Cash Flow Statement). Properly understanding your own Financial Statements and those of the whole business, enables you to make better decisions and impress the CEO.