| |
| |
Preface: What Is Financial Intelligence? | |
| |
| |
| |
The Art of Finance (and Why It Matters to It) | |
| |
| |
| |
You Can't Always Trust the Numbers | |
| |
| |
| |
Spotting Assumptions, Estimates, and Biases | |
| |
| |
| |
Why Increase Your Financial Intelligence? | |
| |
| |
Part One Toolbox | |
| |
| |
Getting what you want | |
| |
| |
The players and what they do | |
| |
| |
| |
The (Many) Peculiarities of the Income Statement | |
| |
| |
| |
Profit Is an Estimate | |
| |
| |
| |
Cracking the Code of the Income Statement | |
| |
| |
| |
Revenue: The Issue Is Recognition | |
| |
| |
| |
Costs and Expenses: No Hard-and-Fast Rules | |
| |
| |
| |
The Many Forms of Profit | |
| |
| |
Part Two Toolbox | |
| |
| |
Variance; Percent calculations; Line of sight | |
| |
| |
| |
The Balance Sheet Reveals the Most | |
| |
| |
| |
Understanding Balance Sheet Basics | |
| |
| |
| |
Assets: More Estimates and Assumptions (Except for Cash) | |
| |
| |
| |
On the Other Side: Liabilities and Equity | |
| |
| |
| |
Why the Balance Sheet Balances | |
| |
| |
| |
The Income Statement Affects the Balance Sheet | |
| |
| |
Part Three Toolbox | |
| |
| |
Employees as assets | |
| |
| |
Expenses versus capital expenditures | |
| |
| |
| |
Cash is King | |
| |
| |
| |
Cash Is a Reality Check | |
| |
| |
| |
Profit [not equal] Cash (and You Need Both) | |
| |
| |
| |
The Language of Cash Flow | |
| |
| |
| |
How Cash Connects with Everything Else | |
| |
| |
| |
Why Cash Matters | |
| |
| |
Part Four Toolbox | |
| |
| |
Free cash flow | |
| |
| |
| |
Ratios: Learning What the Numbers are Really Telling You | |
| |
| |
| |
The Power of Ratios | |
| |
| |
| |
Profitability Ratios: The Higher the Better (Mostly) | |
| |
| |
| |
Leverage Ratios: The Balancing Act | |
| |
| |
| |
Liquidity Ratios: Can We Pay Our Bills? | |
| |
| |
| |
Efficiency Ratios: Making the Most of Your Assets | |
| |
| |
Part Five Toolbox | |
| |
| |
Ratios for the business; Ratios for IT | |
| |
| |
Leading versus lagging indicators | |
| |
| |
Percent-of-sales analysis; Ratio relationships | |
| |
| |
| |
How to Calculate (and Really Understand) Return on Investment | |
| |
| |
| |
The Building Blocks of ROI | |
| |
| |
| |
Figuring ROI: The Nitty-Gritty | |
| |
| |
Part Six Toolbox | |
| |
| |
ROI of an IT Project | |
| |
| |
| |
Applied Financial Intelligence: Working Capital Management | |
| |
| |
| |
The Magic of Managing the Balance Sheet | |
| |
| |
| |
Your Balance Sheet Levers | |
| |
| |
| |
Homing In on Cash Conversion | |
| |
| |
Part Seven Toolbox | |
| |
| |
Understanding accounts-receivable aging | |
| |
| |
| |
Creating a Financially Intelligent It Department (and Organization) | |
| |
| |
| |
Financial Literacy, Transparency, and Corporate Performance | |
| |
| |
| |
Financial Literacy Strategies | |
| |
| |
Part Eight Toolbox | |
| |
| |
Understanding Sarbanes-Oxley | |
| |
| |
| |
Sample Financials | |
| |
| |
| |
Exercises to Build Your Financial Intelligence-Income Statement, Balance Sheet, Cash Flow Statement, Ratios | |
| |
| |
| |
Kimberly-Clark and FedEx Financial Statements | |
| |
| |
Notes | |
| |
| |
Acknowledgments | |
| |
| |
Index | |
| |
| |
About the Authors | |