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

Rick Makoujy

Apr 2010 · McGraw Hill Professional

About this ebook

Put the most valuable business tool to work for you!

The balance sheet is the key to everything--from efficient business operation to accurate assessment of a company’s worth. It’s a critical business resource--but do you know how to read it? How to Read a Balance Sheet breaks down the subject into easy-to-understand components.

If you're a business owner or manager, this book helps you . . .

• Manage working capital
• Generate higher returns on assets
• Maximize your inventory dollars
• Evaluate investment opportunities

If you're an investor, this book helps you . . .

• Determine the market value of a company's assets and operations
• Predict future earnings and trends
• Assess the impact of capital expenditures
• Identify potential "red flags" before the crowd

How to Read a Balance Sheet gives you the bottom line of what you need to know about:
Cash Flow * Assets * Debt * Equity * Profit and how it all comes together.

Ratings and reviews

In respect of credit analysis, This is a good read in understanding the fundamentals of a balance sheet. The simplicity in its presentation sells its use as a reference tool. I was sucked in to buy based on the free sample however I was expecting a more detailed and tabular presentation on ratio analysis and implications. As this is my biggest bug bear it failed to bring the book home to roost. All the same it's not a lost cause to have this on your shelf and would suggest any revised edition should contain ratio analysis being presented as a separate chapter. The present use of ratios is uncomplementary.

I thought it was a very informative book, some parts are very well explained, and some can be difficult to follow.

Nice books...

About the author

About the Author
Rick J. Makoujy, Jr. is the author of the acclaimed 60-minute DVD and online financial literacy program, Accounting In An Hour, which has been successfully utilized by dozens of Fortune 500 companies as well as the U.S. Government. He currently performs turnaround and restructuring consulting for a variety of businesses. Previously, Rick worked in the Price Waterhouse Restructuring Practice and in various capacities on Wall Street. He also has extensive personal experience purchasing, improving and selling operating companies as well as real estate.