Reading financial reports for dummies / Lita Epstein.

Format:

Book

Author/Creator:

Epstein, Lita, author.

Series:

--For dummies.

For dummies

Language:

English

Subjects (All):

Financial statements.

Physical Description:

1 online resource (387 pages)

Edition:

4th ed.

Place of Publication:

Hoboken, New Jersey : John Wiley & Sons, Inc., [2022]

Summary:

Your personal roadmap to becoming fluent in financial reports. At first glance, the data in financial reports might seem confusing or overwhelming. But, with the right guide at your side, you can learn to translate even the thickest and most complex financial reports into plain English. In Reading Financial Reports For Dummies, you'll move step-by-step through each phase of interpreting and understanding the data in a financial report, learning the key accounting and business fundamentals as you go. The book includes clear explanations of basic and advanced topics in finance, from the difference between private and public companies to cash flow analysis. Reading Financial Reports For Dummies is a can't-miss resource for early-career investors, traders, brokers, and business leaders looking to improve their financial literacy with a reliable, accurate, and easy-to-follow financial handbook.

Contents:

Intro

Title Page

Copyright Page

Table of Contents

Introduction

About This Book

Conventions Used in This Book

What You're Not to Read

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1 Getting Started with Financial Reports

Chapter 1 Opening the Cornucopia of Reports

Figuring Out Financial Reporting

Preparing the reports

Seeing why financial reporting counts (and who's counting)

Checking Out Types of Reporting

Keeping everyone informed

Following the rules: Government requirements

Going global

Staying within the walls of the company: Internal reporting

Dissecting the Annual Report to Shareholders

Breaking down the parts

Getting to the meat of the matter

Keeping the number crunchers in line

Chapter 2 Recognizing Business Types and Their Tax Rules

Flying Solo: Sole Proprietorships

Keeping taxes personal

Reviewing requirements for reporting

Joining Forces: Partnerships

Partnering up on taxes

Meeting reporting requirements

Seeking Protection with Limited Liability Companies

Taking stock of taxes

Reviewing reporting requirements

Shielding Your Assets: S and C Corporations

Paying taxes the corporate way

Getting familiar with reporting requirements

Chapter 3 Public or Private: How Company Structure Affects the Books

Investigating Private Companies

Checking out the benefits

Defining disadvantages

Figuring out reporting

Understanding Public Companies

Examining the perks

Looking at the negative side

Filing and More Filing: Government and Shareholder Reports

Quarterly reports

Yearly report

The rules of the Sarbanes-Oxley Act

Dodd-Frank's impact on financial industry regulation

Entering a Whole New World: How a Company Goes from Private to Public.

Teaming up with an investment banker

Making a public offering

Chapter 4 Digging into Accounting Basics

Making Sense of Accounting Methods

Cash-basis accounting

Accrual accounting

Why method matters

Understanding Debits and Credits

Double-entry accounting

Profit and loss statements

The effect of debits and credits on sales

Depreciation and amortization

Checking Out the Chart of Accounts

Asset accounts

Liability accounts

Equity accounts

Revenue accounts

Expense accounts

Differentiating Profit Types

Gross profit

Operating profit

Net profit

Part 2 The Big Show: Annual Reports

Chapter 5 Exploring the Anatomy of an Annual Report

Everything but the Numbers

Debunking the letter to shareholders

Making sense of the corporate message

Meeting the people in charge

Finding basic shareholder information

Getting the skinny from management

Getting guarantees from management

Bringing the auditors' answers to light

Presenting the Financial Picture

Summarizing the Financial Data

Finding the highlights

Reading the notes

Chapter 6 Balancing Assets against Liabilities and Equity

Understanding the Balance Equation

Introducing the Balance Sheet

Digging into dates

Nailing down the numbers

Figuring out format

Ogling Assets

Current assets

Long-term assets

Accumulated depreciation

Looking at Liabilities

Current liabilities

Long-term liabilities

Navigating the Equity Maze

Stock

Retained earnings

Capital

Drawing

Chapter 7 Using the Income Statement

Introducing the Income Statement

Delving into the Tricky Business of Revenues

Defining revenue

Adjusting sales

Considering cost of goods sold

Gauging gross profit

Acknowledging Expenses.

Sorting Out the Profit and Loss Types

EBITDA

Nonoperating income or expense

Net profit or loss

Calculating Earnings per Share

Chapter 8 The Statement of Cash Flows

Digging into the Statement of Cash Flows

The parts

The formats

Checking Out Operating Activities

Depreciation

Inventory

Accounts receivable

Accounts payable

The cash flow from activities section, summed up

Investigating Investing Activities

Understanding Financing Activities

Issuing stock

Buying back stock

Paying dividends

Incurring new debt

Paying off debt

Recognizing the Special Line Items

Discontinued operations

Foreign currency exchange

Adding It All Up

Chapter 9 Scouring the Notes to the Financial Statements

Deciphering the Small Print

Accounting Policies Note: Laying out the Rules of the Road

Revenue

Expenses

Figuring out Financial Borrowings and Other Commitments

Long-term obligations

Short-term debt

Lease obligations

Mergers and Acquisitions: Finding Noteworthy Information

Pondering Pension and Retirement Benefits

Breaking Down Business Breakdowns

Reviewing Significant Events

Finding the Red Flags

Finding out about valuing assets and liabilities

Considering changes in accounting policies

Decoding obligations to retirees and future retirees

Chapter 10 Considering Consolidated Financial Statements

Getting a Grip on Consolidation

Looking at Methods of Buying Up Companies

Reading Consolidated Financial Statements

Looking to the Notes

Mergers and acquisitions

Goodwill

Liquidations or discontinued operations

Part 3 Analyzing the Numbers

Chapter 11 Testing the Profits and Market Value

The Price/Earnings Ratio

Figuring out earnings per share

Calculating the P/E ratio

Practicing the P/E ratio calculation.

Using the P/E ratio to judge company market value (stock price)

Understanding variation among ratios

The Dividend Payout Ratio

Determining dividend payout

Digging into companies' profits with dividends

Return on Sales

Figuring out ROS

Reaching the truth about profits with ROS

Return on Assets

Doing some dividing to get ROA

Ranking companies with the help of ROA

Return on Equity

Calculating ROE

Testing companies using ROE

The Big Three: Margins

Dissecting gross margin

Investigating operating margin

Catching the leftover money: Net profit margin

Chapter 12 Looking at Liquidity

Finding the Current Ratio

Calculating the current ratio

What do the numbers mean?

Determining the Quick Ratio

Calculating the quick ratio

Investigating the Interest Coverage Ratio

Calculating the interest coverage ratio

Comparing Debt to Shareholders' Equity

Calculating debt to shareholders' equity

Determining Debt-to-Capital Ratio

Calculating the debt-to-capital ratio

Chapter 13 Making Sure the Company Has Cash to Carry On

Measuring Income Success

Calculating free cash flow

Figuring out cash return on sales ratio

Checking Out Debt

Determining current cash debt coverage ratio

Computing cash debt coverage ratio

Calculating Cash Flow Coverage

Finding out the cash flow coverage ratio

Mattel

Hasbro

Part 4 How Companies Optimize Operations

Chapter 14 Turning Up Clues in Turnover and Assets

Exploring Inventory Valuation Methods

Applying Three Inventory Valuation Methods

Average costing

FIFO

LIFO

How to compare inventory methods and financial statements

Determining Inventory Turnover.

Calculating inventory turnover

Investigating Fixed Assets Turnover

Calculating fixed assets turnover

Tracking Total Asset Turnover

Calculating total asset turnover

Chapter 15 Examining Cash Inflow and Outflow

Assessing Accounts Receivable Turnover

Calculating accounts receivable turnover

Taking a Close Look at Customer Accounts

Finding the Accounts Payable Ratio

Calculating the ratio

Determining the Number of Days in Accounts Payable

Deciding Whether Discount Offers Make Good Financial Sense

Calculating the annual interest rate

Chapter 16 How Companies Keep the Cash Flowing

Slowing Bill Payments

Speeding Up Collecting Accounts Receivables

Borrowing on Receivables

Reducing Inventory

Getting Cash More Quickly

Part 5 The Many Ways Companies Answer to Others

Chapter 17 How Companies Find Errors: The Auditing Process

Inspecting Audits and Auditors

Looking for mistakes

Meeting Mr. or Ms. Auditor

Examining Records: The Role of the Auditor

Preliminary review

Fieldwork

Audit report

Filling the GAAP

Accounting standards: Four important qualities

Changing principles: More work for the FASB

Getting more involved internationally

Chapter 18 Government Regulations and Reporting Requirements

Checking Out the 10-Q

Financial information

Other critical matters

Introducing the 10-K

Business operations

Financial data

Information about directors and executives

The extras

Investigating Internal Controls

Uncovering the Ways Companies Keep in Compliance

Digging into Board Operations

Understanding the nominating process.

Contacting board members.

Notes:

Includes index.

Description based on print version record.

ISBN:

1-119-87138-7

OCLC:

1308980240