- Series: HOW TO READ A FINANCIAL REPORT
- Hardcover: 192 pages
- Publisher: Wiley; 5 edition (March 2, 1999)
- Language: English
- ISBN-10: 0471329355
- ISBN-13: 978-0471329350
- Product Dimensions: 7 x 0.8 x 10.3 inches
- Shipping Weight: 1.1 pounds
- Average Customer Review: 68 customer reviews
- Amazon Best Sellers Rank: #2,895,979 in Books (See Top 100 in Books)
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
How to Read a Financial Report: Wringing Vital Signs Out of the Numbers 5th Edition
Use the Amazon App to scan ISBNs and compare prices.
Fulfillment by Amazon (FBA) is a service we offer sellers that lets them store their products in Amazon's fulfillment centers, and we directly pack, ship, and provide customer service for these products. Something we hope you'll especially enjoy: FBA items qualify for FREE Shipping and Amazon Prime.
If you're a seller, Fulfillment by Amazon can help you increase your sales. We invite you to learn more about Fulfillment by Amazon .
The Amazon Book Review
Author interviews, book reviews, editors picks, and more. Read it now
Customers who viewed this item also viewed
What other items do customers buy after viewing this item?
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
Apparently, accounting instruction in American universities hasn't gotten any better since he was in school.
Thank goodness for this book; It may be basic, but, unfortunately, these basics weren't something that were well articulated during my time in school either. Maybe I was sleeping too.
Tracy jumps in by introducing cash flows and basic financial statements. He continues through the first half of the book by going down the income statement and the balance sheet together, describing how the numbers from the two statements work together (i.e. which portions of the income statement affect various numbers on the balance sheet).
Next, Tracy jumps into cash flows and describes the cash flow statement. He nicely illustrates how cash flow and profit differ and how they can grow in opposite directions depending on whether the business is expanding or shrinking. Tracy then covers logistics - he talks about statement footnotes, the importance of CPA audits, and the organizations and standards surrounding financial statements. He continues by discussing the various methods of expensing the cost of goods (LIFO, FIFO, average) and various depreciation and amortization techniques, and wraps up with common financial ratios (ROE, ROI, P/E, etc.) and a brief FAQ of basic questions and answers.
There are many diagrams throughout the book, and they are, for the most part, very helpful. I found a couple small errors in the diagrams (and a couple typos throughout the text), but they didn't really hinder my understanding - it was obvious what the author was trying to say and show.
This book does not require any previous knowledge of the subject. In fact, Tracy does a fantastic job defining everything he discusses. I like how new terms and concepts are italicized to emphasize their importance. The book is well organized (see 2nd and 3rd paragraphs of this review), although I wish that chapters 20 and 21 (cost of goods expense methods, depreciation & amortization techniques) came earlier in the book - closer to where Tracy discussed these items on the income statement. However, I do understand his motivation to save these items for later - so as not to confuse the reader with more advanced topics while introducing the basics - and to postpone the discussion of various ways to affect the net income.
Tracy is unafraid to give his own personal advice. He often uses "I think" and "in my opinion" throughout the book to emphasize his own preferences and thoughts rather than the generally accepted ideas. He expresses his opinions on the GAAP (generally accepted accounting principles), the organizations that ultimately govern the GAAP, and, most importantly, on acceptable and average values for various financial ratios - I found this to be most helpful.
On a totally different note, the book has an interesting physical format - it is wider than it is taller. While this sucks for bookshelf storage, it gives lots of room for the large and clear diagrams.
In conclusion, I recommend this book to anyone wishing to learn about financial statements. You will not see very advanced topics, but you will get a great introduction and quite a bit of practical advice. Excellent job by John Tracy!
+ very easy to read and understand - Tracy's explanations are simple and straight to the point
+ lots of diagrams, which nicely illustrate the flow of numbers
+ great intro to the 3 basic financial statements
+ additional useful and interesting info on the organizations and standards surrounding financial statements
+ practical advice (average values for certain ratios, what to look for first in the financial statements, etc.)
- a couple small diagram errors and typos (not very significant)
- could include more info on advanced topics
By relating the key items in each statement both the beginner and the more advanced can easily understand and think about key concepts such as the relation between Sales Revenue and Accounts Receivables and the significant of depreciation.
I also liked other topics that were covered in the book such as the explanation of various ratios (and their significance both for investors and creditors).
The book is a great gem for whoever wants to learn the language of business - accounting.
Author of "Why do we sell low and buy high? The guide you must read BEFORE you invest"