book

Financial Statement Analysis, 5th Edition

by Martin S. Fridson, Fernando Alvarez

April 2022

Beginner to intermediate

448 pages

13h 18m

English

Wiley

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THE PURPOSE OF FINANCIAL REPORTINGTHE FLAWS IN THE REASONINGSMALL PROFITS AND BIG BATHSMAXIMIZING GROWTH EXPECTATIONSDOWNPLAYING CONTINGENCIESTHE IMPORTANCE OF BEING SKEPTICALCONCLUSIONNOTES
THE VALUE PROBLEMCOMPARABILITY PROBLEMS IN THE VALUATION OF FINANCIAL ASSETSINSTANTANEOUS WIPEOUT OF VALUEHOW GOOD IS GOODWILL?LOSING VALUE THE OLD‐FASHIONED WAYTRUE EQUITY IS ELUSIVEBOOK VALUE MAY OVERSTATE REALITYPROS AND CONS OF A MARKET‐BASED EQUITY FIGURETHE COMMON FORM BALANCE SHEETCONCLUSIONNOTES

MAKING THE NUMBERS TALKHOW REAL ARE THE NUMBERS?CONCLUSIONNOTES
THE CASH FLOW STATEMENT AND THE LEVERAGED BUYOUTANALYTICAL APPLICATIONSIN DEFENSE OF SLACKCONCLUSIONNOTES
BONA FIDE PROFITS VERSUS ACCOUNTING PROFITSWHICH COSTS COUNT?CONCLUSIONNOTES
MAKING IT UP AT GOWEXGLOBO'S FORESEEN FALL FROM GRACECHANNEL‐STUFFING IN THE DRUG BUSINESSA SECOND TAKE ON EARNINGSMAKING THE NUMBERS AT M/A‐COMASTRAY ON LAYAWAYRECOGNIZING MEMBERSHIP FEESA POTPOURRI OF LIBERAL REVENUE RECOGNITION TECHNIQUESFATTENING EARNINGS WITH EMPTY CALORIESTARDY DISCLOSURE AT HALLIBURTONMANAGING EARNINGS WITH RAINY DAY RESERVESFUDGING THE NUMBERS: A SYSTEMATIC PROBLEMCONCLUSIONNOTES
DIAMOND FOODS'S MOVABLE EXPENSESNORTEL'S DEFERRED PROFIT PLANGRASPING FOR EARNINGS AT GENERAL MOTORSTIME‐SHIFTING AT FREDDIE MACCONCLUSIONNOTES
EBIT, EBITDA, AND TOTAL ENTERPRISE VALUETHE ROLE OF EBITDA IN CREDIT ANALYSISABUSING EBITDAA MORE COMPREHENSIVE CASH FLOW MEASUREWORKING CAPITAL ADDS PUNCH TO CASH FLOW ANALYSISCONCLUSIONNOTES
WHERE WAS THE CASH?SLOPPINESS CAN BE A RED FLAGHOW MANIPULATION EVADES DETECTIONSYSTEMATIC PROBLEMS IN AUDITINGCONCLUSIONNOTES
GOODWILL GOES BADDOUBLE TROUBLECONCLUSIONNOTES
TELLTALE SIGNS OF MANIPULATIONFRAUDSTERS KNOW FEW LIMITSENRON: A MEDIA SENSATIONHEALTHSOUTH'S EXCRUCIATING ORDEALMILK AND OTHER LIQUID ASSETSTROUBLE WAS BREWING AT LUCKINCONCLUSIONNOTES
A TYPICAL ONE‐YEAR PROJECTIONSENSITIVITY ANALYSIS WITH PROJECTED FINANCIAL STATEMENTSPROJECTING FINANCIAL FLEXIBILITYPRO FORMA FINANCIAL STATEMENTSMULTIYEAR PROJECTIONSCONCLUSIONNOTES
BALANCE SHEET RATIOSINCOME STATEMENT RATIOSSTATEMENT OF CASH FLOWS RATIOSCOMBINATION RATIOSRELATING RATIOS TO CREDIT RISKCONCLUSIONNOTES
THE DIVIDEND DISCOUNT MODELTHE PRICE‐EARNINGS RATIOTHE DU PONT FORMULAVALUATION THROUGH RESTRUCTURING POTENTIALADVANCED EQUITY ANALYSISCONCLUSIONNOTES

Overview

The updated, real-world guide to interpreting and unpacking GAAP and non-GAAP financial statements

In Financial Statement Analysis, 5th Edition, leading investment authority Martin Fridson returns with Fernando Alvarez to provide the analytical framework you need to scrutinize financial statements, whether you're evaluating a company's stock price or determining valuations for a merger or acquisition. Rather than taking financial statements at face value, you'll learn practical and straightforward analytical techniques for uncovering the reality behind the numbers. This fully revised and up-to-date 5th Edition offers fresh information that will help you to evaluate financial statements in today's volatile markets and uncertain economy. The declining connection between GAAP earnings and stock prices has introduced a need to discriminate between instructive and misleading non-GAAP alternatives. This book integrates the alternatives and provides guidance on understanding the extent to which non-GAAP reports, particularly from US companies, may be biased.

Understanding financial statements is an essential skill for business professionals and investors. Most books on the subject proceed from the questionable premise that companies' objective is to present a true picture of their financial condition. A safer assumption is that they seek to minimize the cost of raising capital by portraying themselves in the most favorable light possible. Financial Statement Analysis teaches readers the tricks that companies use to mislead, so readers can more clearly interpret statements.

Learn how to read and understand financial statements prepared according to GAAP and non-GAAP standards
Compare CFROI, EVA, Valens, and other non-GAAP methodologies to determine how accurate companies' reports are
Improve your business decision making, stock valuations, or merger and acquisition strategy
Develop the essential skill of quickly and accurately gathering and assessing information from financial statements of all types

Professional analysts, investors, and students will gain valuable knowledge from this updated edition of the popular guide. Filled with real-life examples and expert advice, Financial Statement Analysis, 5th Edition, will help you interpret and unpack financial statements.