Analysis Of Financial Statements

Recent financial scandals and crises have increased the need for more transparency in financial disclosures and better analysis of available information. In the Third Edition of Analysis of Financial Statements, Pamela Peterson Drake and Frank Fabozzi team up once again to provide you with a practical guide to this dynamic discipline.

Designed with both analysts and investors in mind, this reliable resource is filled with proven tools and techniques that will help you select, evaluate, and interpret financial data as well as other pertinent information in order to effectively analyze the operating performance and financial condition of a company. Along the way, it not only offers valuable insights on financial analysis, but also reveals how to use data in the most meaningful way possible.

Written to reflect current market conditions, this Third Edition incorporates changes from the Dodd-Frank Wall Street Reform and Consumer Protection Act which affects the disclosures and regulation of many entities and brings attention to the importance of credit analysis throughout and shares a number of significant lessons you should be aware of regarding financial analysis.

This book is divided into three comprehensive parts:

• Part One introduces you to financial analysis, discusses currently available financial information, and addresses issues associated with the quality of that information
• Part Two presents different ways of analyzing financial data, including financial ratios and cash flow analysis, and discusses the pitfalls you may encounter in financial analysis citing numerous actual cases to illustrate them
• Part Three applies the financial analysis tools developed in the previous part of the book to equity valuation, credit analysis, and fundamental factor models

This new edition also contains multiple-choice questions that appear at the end of each chapter. These questions will allow you to realistically assess your understanding of the topics discussed before moving on to the next chapter.

While it's important to understand the tools available in analyzing financial information, it is also essential to understand how to use them in the most effective manner possible. The Third Edition of Analysis of Financial Statements can help you achieve these elusive goals.