Finding Meaning in Financial Statements

A Look behind the Numbers

Key Topics Covered in This Chapter

  • Profitability, key activities, and solvency
  • Comparing the financial statements of different entities
  • Balanced scorecards

CHAPTER 1 EXPLAINED The three key financial statements and their various components. Chapter 2 provides you with tools for interpreting those statements and assessing business performance. Additionally, it introduces a relatively new approach to gauging a business’s nonfinancial aspects that ultimately foreshadow financial performance.

Ratio Analysis

Many people use financial statements, and often for very different reasons. Lenders want to know if a company seeking funds has the capacity to repay them. Investors are interested ...

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