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This work offers a summary of the book "UNDERSTANDING FINANCIAL STATEMENTS: How to Read Income Statements, Balance Sheets, Cash-Flow Statements and Calculate Financial Ratios" by Joseph T. Straub.
The ability to understand and analyze financial statements is an essential business skill. Financial statements reflect the financial health of a company, and can be the sole basis for making investment decisions. For a company´s management, how decisions made will be reflected in the company´s balance sheet can be a major factor when considering the direction the company may take.
As Joseph T. Straub explains in Understanding Financial Statements, the key financial statements are the Income Statement, the Balance Sheet and the Cash Flow Statement. The information contained in these materials can then be used to calculate a wide array of financial ratios. The financial ratios are an excellent way to compare one company to another, as well as to evaluate the competence and results of one management team by comparison with another.
In this instructive business book, Straub explores the different aspects of financial statements.
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