From our preceding post, Financial Literacy (Part 1): The Income Statement, we discussed how to avoid HR malpractice by developing HR solutions aligned with the financial conditions of the company.

Just as a medical doctor requires checkups prior to handing out Rx slips, the conscientious HR practitioner will gauge the strength of the company – measured as financial health by investors and executives alike – through a financial check prior to recommending the best course of human capital intervention.

In the next 18 minutes, take another important step toward financial literacy by understanding the balance sheet and cash flow statement while also learning to create additional financial ratios that will make you a conscientious HR practitioner.

Vincent Suppa works with startups and investors and teaches graduate courses at New York University. His email is suppa@suppa.org.

© Vincent Suppa 2016