Financial intelligence : a manager's guide to knowing what the numbers really mean / by Karen Berman and Joe Knight, with John Case
By: Berman, Karen.
Contributor(s): Knight, Joe | Case, John.Publisher: Boston, M.A. : Harvard Business Review Press, 2013Edition: 2nd ed.Description: 284 p. : ill. ; 23 cm.ISBN: 9781422144114.Subject(s): Financial accounting | Financial statementsOnline resources: Download as an eBook
|Item type||Home library||Call number||URL||Status||Notes||Date due||Item reserves|
|Book||Australia||100 BER 2013 (Browse shelf)||Available|
|EBook||International||EBL Ebook (Browse shelf)||Link to resource||eBook||Available as an ebook here|
|Book||New Zealand||210 FIN (Browse shelf)||Available|
THE ART OF FINANCE (AND WHY IT MATTERS): You can't always trust the numbers -- Spotting assumptions, estimates, and biases -- Why increase your financial intelligence? -- The rules accountants follow - and why you don't always have to -- Getting what you want; the players and what they do; reporting obligations of public companies. THE (MANY) PECULIARITIES OF THE INCOME STATEMENT : Profit is an estimate -- Cracking the code of the income statement -- Revenue: the issue is recognition -- Costs and expenses: no hard-and-fast rules --The many forms of profit -- Understanding variance; profit at non-profits; a quick review: "percent of" and "percent change". THE BALANCE SHEET REVEALS THE MOST : Understanding balance sheet basics -- Assets: more estimates and assumptions (Except for cash) -- On the other side: liabilities and equity -- Why the balance sheet balances --The income statement affects the balance sheet -- Expense? Or capital expenditure?; The impact of mark-to-market accounting. CASH IS KING : Cash is a reality check -- Profit doesn't equal cash (and you need both) -- The language of cash flow -- How cash connects with everything else -- Why cash matters -- Free cash flow; even the big guys can run out of cash. RATIOS: LEARNING WHAT THE NUMBERS ARE REALLY TELLING YOU : The power of ratios; Profitability ratios: the higher the better (mostly) -- Leverage ratios: The balancing act --Liquidity ratios: can we pay our bills? -- Efficiency ratios: Making the most of your assets -- The investor's perspective: The "big five" numbers and shareholder value -- Which ratios are most important to your business?; The power of percent of sales; ration relationships; different companies, different calculations. HOW TO CALCULATE (AND REALLY UNDERSTAND) RETURN ON INVESTMENT : The building blocks of ROI; Figuring ROI: the nitty-gritty -- a step-by-step guide to analysing capital expenditures; calculating the cost of capital; economic value added and economic profit - putting it all together. APPLIED FINANCIAL INTELLIGENCE: WORKING CAPITAL MANAGEMENT : The magic of managing the balance sheet -- Your balance sheet levers -- Homing in on cash conversion -- Accounts receivable aging. CREATING A FINANCIALLY INTELLIGENT COMPANY : Financial literacy and corporate performance -- Financial literacy strategies -- Financial transparency: Our ultimate goal -- Understanding Sarbanes-Oxley. APPENDICES - SAMPLE FINANCIALS: Sample income statement -- Sample balance sheet -- Sample cash flow statement.
Discusses financial statements, concepts and analysis from the perspective of a non-financial manager. Emphasises the importance of assumptions, estimates and biases, and provides an outline of GAAP and non-GAAP reporting. Explains how to read financial statements, calculate critical ratios, use return-on-investment tools and manage working capital. Includes a chapter on creating a financially intelligent company.