Reading financial statements
Hey monkeys,
as the title suggests i'm looking for resources to tap into to learn how to better read financial statements (I/S, B/S, C/F etc).
Would it be a better idea to go through these statements and google/investopedia the terms I don't know or is there a good book out there that is comprehensive (and mind-numbingly boring) in knowledge on different accounting standards and etc
I realize its probably best to just sift through a lot of financial statements on 10-k's but I'd want to get a good part of the fundamentals down (I'm no novice)
Thanks
soules9219
Breaking Into Wall Street offers some good accounting fundamentals.
when i was in college, i read this book on my free time:
http://www.amazon.com/Financial-Intelligence-Managers-Knowing-Numbers/d…
Financial Intelligence is way better and far more easy to digest than anything you'll pick up in an accounting or corporate finance class. the book goes through the major line items of each statement, how to derive key ratios, and where exactly the line between the art and science in accounting is blurred.
once you get this book down (less than 200 pages, you'll finish it within a week), you'll feel way more confident and comfortable sifting through a 10-k or 10-q. let's just say this book got me off in the right track for a career in finance.
cheers.
There are many ways. My personal favourite book is "How to read a financial statement" by John Tracy. For someone as dumb as me, its helpful to show how everything is linked so I can understand how everything flows and detect my mistakes quickly. There's also a free PDF by Merril Lynch: http://www.lib.uwo.ca/files/business/howtoreadfinreport.pdf on reading financial statements. Or you can pick up the CFA level 1 accounting book and read it(it'll give you all the info you'll need to read/understand statements).
You can read all the books in the world but without practice it won't mean anything. I suggest 2 things to really get good. 1) go to edgar and read as many statements as you can. Do not skip any line without understanding(google is your friend here).
2) try to learn how to model or create your own statements, this will allow you to be directly engaged and make learning faster/easier and more fun.
Good resources for financial statement analysis??? (Originally Posted: 12/08/2009)
Hi All, Does anyone know of some good books on financial statement analysis???? I'm looking to boost my skills and want something that'll help me go way beyond mere ratio analysis like most of what's on the market today.
Thank you.
Book #2 of the CFA curriculum - It pulls together a lot of different textbooks to make one "pretty good" one. Level I is good if you haven't had an UG FSA/Reporting course, and Level II goes in to WAY more depth than you'll likely cover in UG. You can find both on Ebay, or possibly in ebook format if you search around enough.
Thanks Oversold. I appreciate that. I'll check into those books. Take care
Resource for students needing quick financial statements tutorial: (Originally Posted: 03/13/2007)
Basic overview of the statements. Pretty solid overview of the main purpose of each.
http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html
If you guys need a more printer friendly overview, shoot me a PM and I will send you a PDF which has all of the Wall Street Prep Accounting Crash Course in it.
.
Thanks, seems a bit long but overall helps explain everything
Ew. it's from a non-target.
They have different accounting principles at LondonE1's target school.
London, you're a perfect example of how targets don't always produce the best of the bunch. You're clearly inferior to 99% of the people on this board, yet you somehow managed to land at an Ivy and then land an SA at a BB. Good thing you'll just be a fill-in over the summer until they realize you don't belong. You're destined for a career in BO operations.
I don't think LondonE1 was serious. I took his comment as a joke and I come from a complete non-target (no ibanks ever recruit at my school not even small boutiques/local)
thanks PussInBoots. People get offended too easily here. have some sense of humour guys.
ditto
London's just a tool. I don't really take offense to the non-target comment. I actually could care less. I just find him to be quite annoying and a know-it-all.
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