Product Description

Understanding the Financials—and What Lies Behind Them

Managers in every business are expected to use financial data to make decisions, allocate resources, and budget expenses. But the truth is, many are uncomfortable applying the most basic financial tools in their day-to-day work. Even managers who consider themselves financially savvy may not understand what goes into a financial statement, and so may take the numbers as gospel when they should be questioning them.

In Financial Intelligence, Karen Berman and Joe Knight present the essentials of finance, but with an extra dimension. Succinct, easy-to-read chapters teach the fundamentals in a way that everyone can understand and put to work right away. But the authors also take you behind the scenes, to show where the numbers come from. Since nobody can quantify everything, accountants and finance executives always rely on estimates, assumptions, and judgment calls, which can skew the numbers in one direction or another. This book helps you recognize and understand those biases, challenge or correct for them when necessary, and use this information to be a better manager.

Based on their work training tens of thousands of managers and employees at many leading organizations, Berman and Knight provide readers with a deep understanding of:

The basics of financial measurement: reading income statements, balance sheets, cash flow statements, and moreThe art of finance: separating hard data from assumptions and estimatesThe mechanics of analysis: calculating ratios, return on investment, and working capitalCash and profit: knowing the difference between them, and why cash is suddenly the "hot" number in corporate boardrooms and on Wall StreetFinancial literacy and transparency: recognizing how they can boost performance

Accessible, jargon-free, and filled with entertaining stories from real companies, Financial Intelligence will help nonfinancial managers add substantially more to their companies’—and their own—success. If you have ever wanted to "talk numbers" confidently with your colleagues, this is the book for you.

Product Details

• Amazon Sales Rank: #8157 in Books
• Published on: 2006-01-12
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 288 pages

Review
"It's like The Elements of Style of finance." -- CFO.com

About the Author
Karen Berman and Joe Knight are the owners of the Los Angeles–based Business Literacy Institute and have trained tens of thousands of managers at many leading organizations. Coauthor John Case has written several popular books on management.

Customer Reviews

A MUST-READ FOR EVERY DECISION-MAKER WITHOUT EXPERTISE IN FINANCE.
A MUST-READ FOR EVERY DECISION-MAKER WITHOUT EXPERTISE IN FINANCE

This book is MORE than a concise, highly readable, jargon-free introduction to the fundamentals of finance for nonfinancial managers. Beyond the basics, the authors enable readers to gain a solid understanding of financial intelligence which, in essence, consists of four skill sets that help the reader understand:
1) The basics of financial measurement
2) The art and science of finance
3) How to analyze the numbers in greater depth
4) How to view financial results in context

The authors also aim to enable nonfinancial managers to:
1) speak the language
2) ask questions to figure out the what, why and how of the numbers
3) use the information in doing their jobs and see their connection with financial performance

The book's eight major sections are:
1) the art of finance and why it matters
2) the (many) peculiarities of the income statement
3) the balance sheet reveals the most
4) cash is king
5) ratios: learning what the numbers are really telling you
6) how to calculate (and really understand) return on investment
7) applied financial intelligence: working capital management
8) creating a financially intelligent department (and organization).

Excellent illustrative stories are skillfully woven into the text. The writing is superb, making the book a pleasure to read.

This is, fundamentally, a first-rate course in finance. To create a stronger (MUCH stronger) company, CEOs would be well-advised to have every nonfinancial decision-maker read this book.

What I need to know
I am a non-financial SVP in a large credit union. This book helps me understand what the CFO is talking about. I can even add my two-cents to the ALM discussion. My contribution to the organization will never be financial brilliance but in the financial services world I need the back ground this book provides. Its clear, well organized, and right on point. I hope that all of my non-financial managers will read it.

Makes sense of the "murkier" areas of financial statements and other aspects of finance
What I particularly liked about this book was how the author revealed that knowing the basics of finance is just a start. What is often NOT covered is how to deal with the areas that can't be so easily quanitifed -and, when push comes to shove, have to be estimated and/or assumed.

In short, there is a certain amount of judgment that goes into many income statements and balance sheets. Author Joe Knight gives valuable tips on recognizing and understanding potential biases in financial information and advises readers how to correct for them...or even challenge them.

Those who know the basics will find a lot they've read before but KNOWING the basics is not the same as having true financial literacy, the kind that makes the difference between knowing what is on paper and being able to "read between the lines."

Nonfinancial managers will gain a new understanding of how to build their company's success, with solid financials.

What I particularly liked were the real stories from actual companies, proving that this book is not mere theory but actual, tested information. It is also written in a very, very accessible style. You won't need a distionary to get through it.