Keys to Reading an Annual Report (Barron's Business Keys Ser.)
Over the years, the titles in this popular series have helped ordinary consumers understand principles of prudent money management as a key to personal financial security. Written by experienced financial and investment specialists, Barron's Business Keys use non-technical language that takes the mystery out of business practices. They offer up-to-date advice on saving, investing, seeking mortgages and other loans, protecting one's assets, coping with taxes, and managing many other...
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(back cover) Titles in Barron's Business Keys series present easy-to-understand advice on prudent financial planning, saving, investing, getting loans and mortgages, buying and selling real estate, and dealing with other aspects of money and investment. This updated edition advises investors on how to cut through public relations jargon, focus on an annual report's important facts and figures, and use that information to assess a company's financial health.
Understanding Annual Report ComponentsUnderstanding This Book 1What Is an Annual Report? 3Highlights, Letter, and Management's Discussion and Analysis 5Financial Statements and Notes 7Annual Reports on the Internet 9Understanding Financial StatementsBasic Accounting Principles 12Materiality 16Note One 18Notes on Commitments, Including Leases and Contingent Liabilities 20Notes Relating to Pension and Post-Retirement Benefits 24Segmental and Company-Wide Information 28Management Evaluation of Disclosure Controls and Procedures 31Audit Reports 33Reports Required by Sarbanes-Oxley 37Compilation and Review Reports 40SEC Forms 10-K, 10-Q, and 8-K 43Components of the Balance Sheet 46Current Assets 51Cash and Receivables 53Inventories 56Property, Plant and Equipment 59Depreciation 61Intangibles and Other Assets 66Depletion and Amortization 69Investments 71CurrentLiabilities 77Noncurrent Liabilities 79Bonds and Amortization 83Owners' Equity 86Classes of Stock 88Treasury Stock 93Retained Earnings and Appropriations 95Donated Capital and Subscribed Stock 97Stock Issued to Employees 99Income Statement Components 104Sales and Other Revenues 109Bad Debts 112Cost of Goods Sold and Inventories 114Manufacturing Costs 117Operating Expenses 119Discontinued Operations 121Extraordinary Items 125Taxes and Tax Deferrals 128Comprehensive Income 132Derivatives 135Accrual Accounting Versus Cash Flow 140Statement of Cash Flows 142Consolidated Financial Statements 144Quarterly Statements 148Earnings Per Share 150Analyzing Financial StatementsRatio Analysis 154Profitability Ratios 157Activity Ratios 160Liquidity Ratios 162Cash Flow Ratios and Quality of Earnings 164Overall (Debt and Equity) Ratios 166Operating and Financial Leverage 168Common Size Statements 172Financial Statement Comparability 175Annual Reports of Foreign Companies 178Questions and Answers 181Glossary 185Actual Annual Report 192Index 203
