The language of business
In order to understand how your business is performing right now and to evaluate, assess, and devise new strategies to boost future performance, you need information. Financial statements are a critical source of the information you need.
In direct and simple terms, Richard A. Lambert, Miller-Sherrerd Professor of Accounting at the Wharton School of the University of Pennsylvania, demystifies financial statements and concepts and shows you how you can apply this information to make better business decisions for long-term profit. You will learn to use and interpret financial data; find out what we can learn from Pepsi, Krispy Kreme, General Motors, and other companies; learn how to evaluate investment strategies; and apply your financial know-how to develop a coherent business strategy.
About the Author
Richard A. Lambert is Miller-Sherrerd Professor of Accounting at the Wharton School of the University of Pennsylvania, where he teaches finance and accounting in the MBA and Executive Education programs, as well as seminars in the doctoral program. The recipient of several teaching awards, his articles have appeared in The Accounting Review, Journal of Accounting Research, Journal of Accounting and Economics, Rand Journal of Economics, and Strategic Management Journal.
Table of Contents
Chapter 1 Your Company's Financial Health: What Financial Statements Can Tell You 15
Chapter 2 Impacting the Scorecard: How and When Actions and Events Affect the Numbers 35
Chapter 3 Using the Income Statement: Revenues, Expenses, and Profits 55
Chapter 4 Utilizing and Financing Your Assets: ROA, ROE, and Leverage 77
Chapter 5 Using Cost Information: Know How Your Costs Behave 101
Chapter 6 Evaluating Investment Opportunities: Discounted Cash Flow Analysis 117
Appendix: More on the Cash Flow Statement: The Indirect Method 151
About the Author 169