Financial knowledge that managers need to know

Good morning, colleagues! Today we will briefly review some basic financial knowledge that managers need to master to help us better understand the company's operating conditions and improve decision-making capabilities.

1. Financial statements

- Income statement: reflects the company's operating results in a certain period of time and understands the structure of income, costs and profits.

- Balance sheet: shows the company's financial status at a certain point in time, the distribution of assets, liabilities and shareholders' equity.

- Cash flow statement: pay attention to the inflow and outflow of the company's funds to ensure the cash health of the company's daily operations.

2. Financial indicators

- Gross profit margin and net profit margin: important indicators to measure the company's profitability.

- Accounts receivable turnover rate: reflects the company's capital recovery speed and affects capital liquidity.

- Inventory turnover rate: helps us understand inventory management efficiency.

3. Cost control

As managers, we need to pay close attention to changes in various costs to ensure the effective use of resources.

By understanding and analyzing these financial data, we can make more scientific and accurate decisions and promote the sustainable development of the company.