Chapter 5
Managing Results
IN THIS CHAPTER
Getting a feel for financial reports
Judging profit and earnings performance
Sizing up your business’s cash position
Recognizing signs of trouble in a company’s finances
Part of a manager’s responsibility in overseeing the daily operations of a business is keeping their finger on the pulse of the company’s financial health. The numbers reflect how successfully a business is performing its operations. The financial results may also raise red flags to let you know that you need to attend to a certain aspect of your business more carefully.
This chapter offers practical guidance and tips for managers on how to glean important information and insights from financial reports, how to think critically about the information being presented, and how to respond in a competitive manner. Non-accountants often say they don’t read financial reports because they’re not “numbers” people. Too often people think of these reports purely as legal requirements for oversight, but these reports tell a story vital to understanding the decisions and behaviors of ...
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