Introduction

When faced with financial statements of a firm, very often students and even practitioners are seen to be at a loss where to begin with analysis. Most simply compute every ratio they know and interpret them in a standalone manner. They are unable to thread them together to spin a meaningful story that can completely or at least substantially explain what might be happening at the firm. Decision making of any kind based on such a piecemeal approach will remain flawed.

Approach and Audience

This book uses a logical, top-down approach to unraveling the underlying story of the firm. It can be used by students and working executives who have a rudimentary prior idea of financial statements as well as familiarity with the very basic financial ratios.

Myth and Importance

It is a myth that only executives in the finance function need to understand financial statements. Every decision within a firm has implications for the financial statements, and the need for such knowledge increases as one goes up the corporate ladder.

Style and Accessibility

The book is intended to be free flowing, with minimum jargon so as to be understood and appreciated especially by non-finance executives and students of business and management.