Saturday, October 18, 2008

The striptease was good ;)

Today was our last financial accounting class (also glamorously called language of business) and we had financial statement analysis - how to decipher the strategies of the companies and also how healthy companies are from their income statement, balance sheet and cash flow statements. First we start by analysing some basic ratios and then we each of these ratios are further split into other components and more related ratios are analysed. If anything looks suspicious or if we want more information then we dig in more ratios that form the parent ratio. Prof:"It is like peeling an onion. You peel it layer by layer. It is like striptease. If you see only some ratios and leave the others, it is like seeing a half naked body. You wont get the full picture. You may see muscles on the upper half and be happy but you may be shocked to know that there are no muscles on the lower half." Financial statement analysis = Striptease !!! ************************************************************************************** Student:"Sir, the analysis"
then a pause.
Prof looking at him. Student: "Sir, when you do it vertically and horizontally....umm...Sir, I did it the analysis horizontally"
Then Prof is like "So, do you do it vertically, or horizontally?" Pregnant pause, a smile and a blink in his eyes "the analysis, that is"?

1 comment:

  1. haha..too good..vividly describes what happened in class :)..keep up the good work..these things would make an interesting read 10-15 years down the line