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Finance for financially-challenged banking chairmen
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Finance for financially-challenged banking chairmen

We’ve just launched a new version The Balance Sheet Barrier, a financial training video. It’s specifically targeted at non-financial managers but, given recent events at the Co-operative, we thought maybe it was time to get some financial learning out to a wider audience.

Balance Sheet Barrier

So, here’s our (alternative) guide to finance for banking professionals…

  • Fixed costs– Not to be confused with the ‘cost of getting a fix’, a fixed cost remains unchanged even with variations in output.
  • Gearing– Again, easily confused with ‘actions involved in getting ‘gear’, ‘blow’ or any other illegal substance’. Gearing is actually a measure of the extent to which a company is funded by debt.
  • Depreciation– Certain assets, such as buildings and equipment, depreciate, or decline in value, over time. Embarrassing chairmen depreciate at a faster rate than other assets.
  • Current Liabilities– The board, the regulators, the politicians..? The real definition is: money owed to suppliers, reducing the amount the business itself has had to invest in working capital.
  • Acid Test– To dabble with Class A narcotics…or a measure of a company’s ability to pay its short term debts.

Video Arts Balance Sheet Barrier demystifies business finance and explains P&Ls, balance sheets, and cash flows: in a way that even a bank chairman can understand.

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