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How to Read a Financial Report
Book

How to Read a Financial Report

Wringing Vital Signs out of the Numbers

Wiley, 2004
First Edition: 1980 more...


Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Taking the time to learn the basics of reading corporate financial statements can help you become more informed about your investments, your job and your business decisions. John A. Tracy provides a clearly written guide to core financial reports. He shows you how they fit together and why they matter. You will gain confidence as you work through the concepts he explains and begin to use what you learn to dig into the financials of familiar companies. In the hands of a lesser teacher than Tracy, these concepts could be confusing. In fact, the whole discussion could become a powerful soporific that descends on your mind like a fog. Instead, this book makes it interesting and clear. Everyone needs some financial awareness. getAbstract believes that this valuable introduction is a good starting point for learning to read real business data. New managers may find that Tracy opens a door and invites you to come into a room that was previously locked.

Take-Aways

  • A company’s core financials reports are its balance sheet, and its income and cash flow statements.
  • These reports interconnect to provide a clear view of a company’s performance.
  • Accrual accounting matches revenues and expenses within the correct time period.

About the Author

John A. Tracy is emeritus professor of accounting at the University of Colorado at Boulder. He has written several books on accounting issues.


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