Since its release in 2006, Financial Intelligence has become a favorite among managers who need a guided tour through the numbers—helping them to understand not only what the numbers really mean, but also why they matter.
This new, completely updated edition brings the numbers up to date and continues to teach the basics of finance to managers who need to use financial data to drive their business. It also addresses issues that have become even more important in recent years—including questions around the financial crisis and those around broader financial and accounting literacy.
Accessible, jargon-free, and filled with entertaining stories of real companies, Financial Intelligence gives nonfinancial managers the confidence to understand the nuance beyond the numbers—to help bring everyday work to a new level.
Table of contents
- Title Page
- Preface: What Is Financial Intelligence?
Part One. The Art of Finance (and Why It Matters)
- 1. You Can’t Always Trust the Numbers
- 2. Spotting Assumptions, Estimates, and Biases
- 3. Why Increase Your Financial Intelligence?
- 4. The Rules Accountants Follow—and Why You Don’t Always Have To
- Part One Toolbox:
- Part Two. The (Many) Peculiarities of the Income Statement
Part Three. The Balance Sheet Reveals the Most
- 10. Understanding Balance Sheet Basics
- 11. Assets: More Estimates and Assumptions (Except for Cash)
- 12. On the Other Side: Liabilities and Equity
- 13. Why the Balance Sheet Balances
- 14. The Income Statement Affects the Balance Sheet
- Part Three Toolbox:
- Part Four. Cash Is King
Part Five. Ratios: Learning What the Numbers Are Really Telling You
- 20. The Power of Ratios
- 21. Profitability Ratios: The Higher the Better (Mostly)
- 22. Leverage Ratios: The Balancing Act
- 23. Liquidity Ratios: Can We Pay Our Bills?
- 24. Efficiency Ratios: Making the Most of Your Assets
- 25. The Investor’s Perspective: The “Big Five” Numbers and Shareholder Value
- Part Five Toolbox:
- Part Six. How to Calculate (and Really Understand) Return on Investment
- Part Seven. Applied Financial Intelligence: Working Capital Management
- Part Eight. Creating a Financially Intelligent Company
- Appendix: Sample Financials
- About the Authors
- Title: Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean
- Release date: February 2013
- Publisher(s): Harvard Business Review Press
- ISBN: 9781422144114
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