Notes

Chapter 2: Finding Meaning in Financial Statements

1

Our discussion of financial ratios leans heavily on William J. Bruns Jr., “Introduction to Financial Ratios and Financial Statement Analysis,” Class note 9-193-029 (Boston: Harvard Business School Publishing, revised August 21, 1996).

2

Preferred stock or other securities that are convertible into common shares are often treated as common stock equivalents in making this calculation. We’ll discuss these different classes of ownership and securities in chapter 4.

3

Robert S. Kaplan and David P. Norton, “The Balanced Scorecard: Measures That Drive Performance,” Harvard Business Review, January – February, 1992. For a fuller discussion of the balanced scorecard and its implementation, see ...

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