Key financial tools essential for laboratory managers to effectively oversee and manage their lab operations.

1. Ola H. Elgaddar
MD, PhD, MBA
Ass. Professor of Chemical Pathology, Alexandria University, Egypt
ola.elgaddar@alexu.edu.eg
Financial Tools

2. Help maintaining
the financial
health of an
organization by
Planning,
Organizing,
Controlling &
Monitoring
financial
transactions.

3. Financial Statements
Financial Ratios
Financial KPIs

6. Balance Sheet (Statement of Financial Position)
 Presents the financial position of a company at a specific point in
time, usually the end of a fiscal period.
 Key components include assets (current assets and non-current
assets), liabilities (current liabilities and non-current liabilities), and
shareholders' equity (common stock, retained earnings, and
additional paid-in capital).
 Demonstrates the company's assets, liabilities, and shareholders'
equity, providing insights into its financial health and liquidity.

8. Income Statement (Profit and Loss Statement P&L)
 Provides a summary of a company's revenues, expenses, gains,
and losses over a specific period, typically quarterly or annually.
 Shows whether a company is making a profit or incurring losses
during the period.

10. Cash Flow Statement
 Shows the inflow and outflow of cash and cash equivalents from
operating, investing, and financing activities during a specified
period.
 Key sections include operating activities (cash flow from operations),
investing activities (cash flow from investments), financing activities
(cash flow from financing), and net change in cash and cash
equivalents.
 Provides information on a company's ability to generate cash, meet
its obligations, and invest in future growth.

12. Statement of Changes in Equity
(Statement of Shareholders' Equity)
 Summarizes changes in shareholders' equity over a specific period,
typically a fiscal quarter or year.
 This information ties back to a balance sheet for the same period;
the ending balance on the change of equity statement equals the
total equity reported on the balance sheet.
 Key components include beginning balance of shareholders' equity,
net income/loss, dividends, stock issuances or repurchases, and
other changes affecting equity.

14. Financial Statements
Financial Ratios
Financial KPIs

15. Financial Ratios
 Ratios created with the use of numerical values taken from
financial statements to gain meaningful information about a
company.
 The numbers found on a company’s financial statements –
balance sheet, income statement, and cash flow statement –
are used to perform quantitative analysis and assess a
company’s liquidity, leverage, growth, margins, profitability,
rates of return, valuation, and more.

18. Liquidity Ratios
These ratios measure a company's ability to meet its
short-term obligations.
 Current Ratio
 Quick (Acid) Ratio

19. (Acid Ratio)

20. Leverage Ratios
These ratios measure the extent to which a company
relies on debt financing.
 Debt Ratio
 Debt to Equity Ratio

22. Efficiency Ratios
These ratios measure how effectively a company uses
its assets and liabilities.
 Asset Turnover Ratio
 Inventory Turnover Ratio
 AR Turnover Ratio
 AP Turnover Ratio

24. Profitability Ratios
These ratios measure a company's ability to generate
profits relative to its revenue, assets, or equity.
 GP Margin
 OP Margin
 NP Margin
 ROA
 ROE

26. Market Value Ratios
These ratios measure investors' perception of a
company's value and performance.
 P/E Ratio
 M/B Ratio

28. Financial Statements
Financial Ratios
Financial KPIs

29. Specific
metrics used to
evaluate the
financial health
and
performance of
a company
against pre-
defined
objectives