How to Read a Balance Sheet: The Bottom Line on What You Need to Know about Cash Flow, Assets, Debt, Equity, Profit…and How It all Comes Together
Crack the code of finance’s big mystery—the balance sheet
In these times of financial anxiety, the ability to keep track of a company’s finances is more important than ever, and you can’t do this without a firm grasp of the balance sheet.
Whether you’re a small-business owner, department manager, or individual investor or business student, How to Read a Balance Sheet provides the skills you need to make the wisest financial decisions possible. A critical but rarely used business tool for non-financial professionals, the balance sheet provides a snapshot of a company’s financial position at any single point in time.
How to Read a Balance Sheet demystifies the subject by explaining:
- What a balance sheet is and how it is used to boost profits
- Key components of the balance sheet, including cash, receivables, inventory, long-lived assets, accounts payable, accrued expenses, long-term debt, and equity
- How these different elements relate to one another—and how to keep them under control
- Formulas, tips, and examples that illustrate key concepts
- Practical advice to maximize operating efficiencies through effective management
When you have a firm grasp of the balance sheet, you’re better armed to seize business opportunities and avoid financial pitfalls. How to Read a Balance Sheet opens a new door to top performance for any business professional.
User Ratings and Reviews
5 Stars Finance made simple
I love how financial principles are explained fully and simply. This is great for anyone who could benefit from understanding how these simple financial principles work. Good building blocks on how financial sheets are read.
5 Stars Excellent for students, business novices and seasoned professionals
With a Bachelor’s degree in marketing and finance and about 20 years of consulting for small and mid-sized businesses, I’m amazed at how many business owners and executives don’t understand basic accounting. This book covers all you need to know about accounting to run a business and it’s an easy read. Understanding the subject from Makoujy’s perspective would have saved me much time and frustration in school and early in my career. The book provides accounting basics for novices and offers a great refresher for seasoned professionals. I recommend it highly.
5 Stars TERRIFIC BOOK - MADE MY STAFF READ IT
Makoujy is masterful at simplifying the balance sheet and many other critical concepts. I think this book was the best investment I have made in my career in the last 20 years. I actually made my entire staff read it already because it makes everything so clear and speaks to both experienced finance people as well as beginners with relative ease. I’m buying everything this guy writes moving forward.
5 Stars how to read a balance sheet
Excellent source of information. Really enjoyed it and learned a great deal. I have bought several to give to friends. I truly recommend it!
5 Stars Never be Intimidated by a Balance Sheet Again!
Great book! Mr. Makoujy demonstrates his deft understanding of the world of corporate finance by providing an easy to read, insightful guide to the art of reading and mastering a balance sheet.
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