The following books can serve as supplemental material to your course materials to further explain financial statement analyses.
How to Read and Interpret Financial Statements : A Guide to Understanding What the Numbers Mean to You by 
Financial Statement Analysis by
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.
Financial Statement Analysis by
This book presents financial statements as a set of dynamic instruments that can be used for accurate, relevant, and timely financial decisions. It focuses on the economic and financial conditions that cause statements to change and discover how businesses can manage liquidity, debt, and profitability. Plus, explore effect ratios, causal ratios, pro forma analysis, sustainable growth, and much more. Key topics covered include: valuation techniques, effect ratios, DuPont system for analyzing profitability, causal analysis. how to conduct a financial statement analysis, users of financial statements, forecasting sustainable growth, and bankruptcy prediction models.
Financial Ratios for Executives by
Financial Ratios for Executivesis written specifically with today's global executive in mind. It makes financial ratios easy to understand and use effectively. This short book will prove invaluable to both financial and non-financial executives looking for easy, intuitive methods to assess corporate health and assist in strategic decision making. Financial Ratios for Executivescontains over 100 financial ratios and other useful calculations. It includes ratios that are commonly used, such as return on investment (ROI), return on assets (ROA), return on equity (ROE), economic value added (EVA), and debt-to-equity ratio, just to name a few. It also includes many less-well known--yet powerful--ratios that can provide unparalleled insight into operations, financial management, sales and marketing efforts, and overall performance, among other areas. Using realistic financial and operational data from two fictional companies, the explanation of each ratio includes: Type of ratio Formula for calculating the ratio Description of the ratio Example based on ABC Company or XYZ Company Additional comments or insights In addition to the section on financial ratios, financial experts Michael Rist and Albert Pizzica have included a section on capital budgeting, an understanding of which is essential for both the financial and non-financial executives before they take part in an annual budget meeting or any other business meeting where capital allocation is discussed. It includes the most important tools of finance, such as net present value (NPV), internal rate of return (IRR), payback method, and total cost of ownership. Who gets ahead in the business world? Those who understand the numbers. It's as simple as that. Financial Ratios for Executivesis for those who want to understand how to use financial data to support their initiatives, solve persistent problems, uncover opportunities, bolster company health, and shine in corporate meetings.
When looking at the financial numbers for a company and its competitors, it is often helpful to identify sources that help explain why a ratio or items in the financial statements have changed over a period of time or why one company is performing better than the other. Below are some suggestions for resources that can be used to help provide justification for your analysis.
IBISWorld is a database of industry reports. When conducting a financial analysis, it is useful to understand how the company is performing in relation to the industry. An industry report will provide the following:
Handout on how to search IBISWorld: Training Document
Business Source Complete is a database that contains a wealth of information. For the purposes of a company financial analysis, Business Source Complete provides SWOT analysis and company profiles for many companies. You can also locate trade publications, magazine articles and newspaper articles related to your company. You typically won't incorporate scholarly articles in a financial analysis because the information is not always current enough to address what is currently happening within your company.
Tutorials: How to locate a SWOT Analysis How to locate articles in Business Source Complete
Section 7 of a publicly traded company's annual report or 10-K contains the Management's Discussion and Analysis of Financial Condition and Results of Operation (MDA). It provides the leadership of the company the opportunity to explain the financial numbers and discuss trends that have either impacted the company during the reporting year or may impact the company in the future.
To locate a company's annual report: