"Financial Statement Analysis: A Practitioner's Guide
is a well-organized, thorough exploration of the challenges facing practitioners who rely on financial statements to make investment and lending decisions. Reference books about accounting, while valuable for their insights, are seldom this enjoyable to read. This book is different because the authors seamlessly integrate fascinating real-life examples and instructive fictional scenarios into each chapter to illustrate their points. For anyone with a passing interest in the subject, or for new analysts learning the trade, Financial Statement Analysis
is an amazing resource."
, CFA, Director of Product Operations for Enterprise Risk Solutions at Moody's Analytics
"Any book that reaches its 4th edition (updated to 2011) should be good. That's true in spades for Financial Statement Analysis. Fridson and Alvarez have written a classic. It should be required reading and a constant reference source on the bookshelf of any investor intending to buy individual company stocks or bonds."
—Canadian Financial DIY blog
"In the 1990s, Benjamin Graham's Security Analysis served as [Value Partners’] reference book, but since then they have been using Martin Fridson's Financial Statement Analysis: A Practioner's Guide."
—excerpt from The Value Investors: Lessons from the World's Top Fund Managers by Ronald Chan, Bruce C. N. Greenwald (Foreword)
Financial statement analysis is an essential skill for individuals involved in investment management, corporate finance, commercial lending, and the extension of credit. Over the years, it has become an increasingly complex endeavor, as corporate financial statements have become more difficult to decipher. But with the Fourth Edition of Financial Statement Analysis
, you'll learn how to handle the practical challenges that are part of the business.
Written by leading investment authority Martin Fridson and Columbia Graduate Business School Professor Fernando Alvarez, this reliable resource outlines the analytical framework needed to scrutinize financial statements, whether you're evaluating a company's stock price or determining valuations for a merger or acquisition. Fully revised to reflect new concerns and challenges in this field, the Fourth Edition of Financial Statement Analysis will put you in a better position to get past the sometimes biased portrait of a company's performance.
Divided into four comprehensive parts—Reading Between the Lines, The Basic Financial Statements, A Closer Look at Profits, and Forecasts and Security Analysis—this practical guide contains:
Insights that will allow you to evaluate financial statements effectively in volatile markets and an uncertain economy
Discussions on properly interpreting balance sheets, income statements, and cash flow statements
Valuable new case studies of fraudulent reporting
Tips for maximizing the accuracy of forecasts and a structured approach to credit and equity evaluation
Revelations about how earnings can be exaggerated or even fabricated
And much more
All too often, financial statements conceal more than they reveal. But by undertaking genuine, goal-oriented analysis—instead of simply going through the motions of calculating standard financial ratios—you can uncover the true financial condition of a company.
Filled with real-world examples and expertadvice, Financial Statement Analysis, Fourth Edition will help you excel at interpreting financial statements and enable you to use this information to make better business decisions.