Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean
Understanding the Financials-and What Lies Behind Them \ \ Managers in every business are expected to use financial data to make decisions, allocate resources, and budget expenses. But the truth is, many are uncomfortable applying the most basic financial tools in their day-to-day work. Even managers who consider themselves financially savvy may not understand what goes into a financial statement, and so may take the numbers as gospel when they should be questioning them. \ \ In Financial...
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This accessibly written text introduces business managers, entrepreneurs, and students to the fundamentals of financial statements. Using a variety of illustrative case examples, the authors explain how to decipher and analyze financial documents and how to then make informed decisions based on that information. They also discuss financial transparency requirements. Berman and Knight are the owners of the Business Literacy Institute, a consulting firm offering customized financial literacy training programs. Annotation ©2006 Book News, Inc., Portland, OR
1You can't always trust the numbers32Spotting assumptions, estimates, and biases103Why increase your financial intelligence?184Profit is an estimate335Cracking the code of the income statement386Revenue : the issue is recognition467Costs and expenses : no hard-and-fast-rules528The many forms of profit649Understanding balance sheet basics7510Assets : more estimates and assumptions (except for cash)8211On the other side : liabilities and equity9312Why the balance sheet balances9913The income statement affects the balance sheet10214Cash is a reality check11315Profit [actual symbol not reproducible] cash (and you need both)11716The language of cash flow12417How cash connects with everything else12818Why cash matters13719The power of ratios14520Profitability ratios : the higher the better (mostly)15121Leverage ratios : the balancing act15822Liquidity ratios : can we pay our bills?16223Efficiency ratios : making the most of your assets16524The building blocks of ROI17725Figuring ROI : the nitty-gritty18426The magic of managing the balance sheet19927Your balance sheet levers20328Homing in on cash conversion20929Financial literacy and corporate performance21730Financial literacy strategies22331Financial transparency : our ultimate goal228
\ From the Publisher“the best, clearest guides to the numbers that I know of.” Inc. Magazine\ \
