Book description
The updated, real-world guide to interpreting and unpacking GAAP and non-GAAP financial statementsIn Financial Statement Analysis, 5th Edition, leading investment authority Martin Fridson returns with Fernando Alvarez to provide the analytical framework you need to scrutinize financial statements, whether you're evaluating a company's stock price or determining valuations for a merger or acquisition. Rather than taking financial statements at face value, you'll learn practical and straightforward analytical techniques for uncovering the reality behind the numbers. This fully revised and up-to-date 5th Edition offers fresh information that will help you to evaluate financial statements in today's volatile markets and uncertain economy. The declining connection between GAAP earnings and stock prices has introduced a need to discriminate between instructive and misleading non-GAAP alternatives. This book integrates the alternatives and provides guidance on understanding the extent to which non-GAAP reports, particularly from US companies, may be biased.
Understanding financial statements is an essential skill for business professionals and investors. Most books on the subject proceed from the questionable premise that companies' objective is to present a true picture of their financial condition. A safer assumption is that they seek to minimize the cost of raising capital by portraying themselves in the most favorable light possible. Financial Statement Analysis teaches readers the tricks that companies use to mislead, so readers can more clearly interpret statements.
- Learn how to read and understand financial statements prepared according to GAAP and non-GAAP standards
- Compare CFROI, EVA, Valens, and other non-GAAP methodologies to determine how accurate companies' reports are
- Improve your business decision making, stock valuations, or merger and acquisition strategy
- Develop the essential skill of quickly and accurately gathering and assessing information from financial statements of all types
Professional analysts, investors, and students will gain valuable knowledge from this updated edition of the popular guide. Filled with real-life examples and expert advice, Financial Statement Analysis, 5th Edition, will help you interpret and unpack financial statements.
Table of contents
- Cover
- Title Page
- Copyright
- Dedication
- Preface to Fifth Edition
- Acknowledgments
- PART One: Reading Between the Lines
-
PART Two: The Basic Financial Statements
-
CHAPTER 2: The Balance Sheet
- THE VALUE PROBLEM
- COMPARABILITY PROBLEMS IN THE VALUATION OF FINANCIAL ASSETS
- INSTANTANEOUS WIPEOUT OF VALUE
- HOW GOOD IS GOODWILL?
- LOSING VALUE THE OLD‐FASHIONED WAY
- TRUE EQUITY IS ELUSIVE
- BOOK VALUE MAY OVERSTATE REALITY
- PROS AND CONS OF A MARKET‐BASED EQUITY FIGURE
- THE COMMON FORM BALANCE SHEET
- CONCLUSION
- NOTES
- CHAPTER 3: The Income Statement
- CHAPTER 4: The Statement of Cash Flows
-
CHAPTER 2: The Balance Sheet
-
PART Three: A Closer Look at Profits
- CHAPTER 5: What Is Profit?
-
CHAPTER 6: Revenue Recognition
- MAKING IT UP AT GOWEX
- GLOBO'S FORESEEN FALL FROM GRACE
- CHANNEL‐STUFFING IN THE DRUG BUSINESS
- A SECOND TAKE ON EARNINGS
- MAKING THE NUMBERS AT M/A‐COM
- ASTRAY ON LAYAWAY
- RECOGNIZING MEMBERSHIP FEES
- A POTPOURRI OF LIBERAL REVENUE RECOGNITION TECHNIQUES
- FATTENING EARNINGS WITH EMPTY CALORIES
- TARDY DISCLOSURE AT HALLIBURTON
- MANAGING EARNINGS WITH RAINY DAY RESERVES
- FUDGING THE NUMBERS: A SYSTEMATIC PROBLEM
- CONCLUSION
- NOTES
- CHAPTER 7: Expense Recognition
- CHAPTER 8: The Applications and Limitations of EBITDA
- CHAPTER 9: The Reliability of Disclosure and Audits
- CHAPTER 10: Mergers‐and‐Acquisitions Accounting
- CHAPTER 11: Is Fraud Detectable?
- PART Four: Forecasts and Security Analysis
- Glossary
- Further Reading
- About the Authors
- Index
- End User License Agreement
Product information
- Title: Financial Statement Analysis, 5th Edition
- Author(s):
- Release date: April 2022
- Publisher(s): Wiley
- ISBN: 9781119457145
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