Managing By The Numbers
A Commonsense Guide To Understanding And Using Your Company's Financials
Published on 1. January 2019
216 pages
978-1-5416-1791-9 (ISBN)
Description
The essential guide to understanding financial reports, for entrepreneurs, managers, and business owners
Do you get complete financial reports for your business at least once a month?
Do you understand what all those numbers mean?
Do you use the information in those reports to help you make smart decisions about your business?
If you answer "no" to any or all of these questions, then turn to Managing by the Numbers, a highly practical and accessible antidote to financial anxiety. Chuck Kremer, Ron Rizzuto, and John Case show you how to manage the three bottom lines of business financial performance -- net profit, operating cash flow, and return on assets -- and roll them into the "Financial Scoreboard" to see the big picture at a glance. Offering step-by-step examples and an extensive glossary of key terms and concepts, Managing by the Numbers is a commonsense guide to making those numbers work for you -- to monitor and measure performance, make smart decisions, and drive long-term growth. It is an essential resource for anyone eager to improve their mastery of the financial side of running a business.
Do you get complete financial reports for your business at least once a month?
Do you understand what all those numbers mean?
Do you use the information in those reports to help you make smart decisions about your business?
If you answer "no" to any or all of these questions, then turn to Managing by the Numbers, a highly practical and accessible antidote to financial anxiety. Chuck Kremer, Ron Rizzuto, and John Case show you how to manage the three bottom lines of business financial performance -- net profit, operating cash flow, and return on assets -- and roll them into the "Financial Scoreboard" to see the big picture at a glance. Offering step-by-step examples and an extensive glossary of key terms and concepts, Managing by the Numbers is a commonsense guide to making those numbers work for you -- to monitor and measure performance, make smart decisions, and drive long-term growth. It is an essential resource for anyone eager to improve their mastery of the financial side of running a business.
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Other editions
Additional editions
Christopher Meek | W. Gibb Dyer | Warner Woodworth
Managing by the Numbers
Absentee Ownership and the Decline of American Industry
Book
01/1988
Addison Wesley
€18.30
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Persons
Chuck Kremer, CPA, is Senior Business-Literacy Consultant for Boulder-based Educational Discoveries. An originator of "The Financial Game for Decision Making," he teaches financial literacy courses to managers and executives around the country.
Ron Rizzuto, PhD, is a professor of finance at the University of Denver, where he co-founded the entrepreneurship program at the Daniels College of Business.
John Case is executive editor of the newsletter division at Harvard Business School Publishing. A former senior editor and senior writer for Inc. magazine, he is the author of numerous feature stories and several books on entrepreneurship and open-book management.
Ron Rizzuto, PhD, is a professor of finance at the University of Denver, where he co-founded the entrepreneurship program at the Daniels College of Business.
John Case is executive editor of the newsletter division at Harvard Business School Publishing. A former senior editor and senior writer for Inc. magazine, he is the author of numerous feature stories and several books on entrepreneurship and open-book management.
Content
- Intro
- Title Page
- Copyright
- Table of Contents
- List of Tables and Graphs
- Acknowledgments
- Introduction
- Part 1 All You Really Need to Know about Financial Statements
- 1 Two Words on Accounting
- 2 The Balance Sheet
- SOHO Equipment, Inc.
- Understanding the Balance Sheet: Assets
- Understanding the Balance Sheet: Liabilities
- Understanding Equity (and Why a Balance Sheet Balances)
- Two Quick Exercises Using the Balance Sheet
- 3 The Income Statement
- SOHO Equipment: The First Year
- Line Items on the Income Statement
- 4 Cash Flow
- SOHO Equipment: First-Year Cash Flow
- Line Items on the Cash-Flow Statement
- Dissecting the Cash-Flow Statement
- Part 2 Understanding the Big Picture
- 5 The Three Bottom Lines
- Three Bottom Lines
- Trend Analysis
- 6 The Financial Scoreboard
- Part 3 Financial Analysis to Boost Performance
- 7 The Three Financial Goals
- 8 Managing for Optimum Performance: Net Profit
- SOHO Equipment: The Three-Year Story
- Analyzing the Income Statement
- 9 Managing for Optimum Performance: Operating Cash Flow
- SOHO Equipment: Analyzing Cash Flow
- Receivable Days
- Inventory Days
- 10 Managing for Optimum Performance: Return on Assets
- Analyzing ROA
- SOHO Equipment, Inc.
- 11 Ratio Magic
- The "Simple" Du Pont Equation
- SOHO Equipment
- The "Extended" Du Pont Equation
- SOHO Equipment
- Planning with the ROA and ROE Graphs
- 12 Forward-Looking Financials
- Step 1: Getting Ready
- Step 2: Projecting Sales
- Step 3: Preparing a "Business as Usual" Projection
- Step 4: Proactive Planning
- Step 5: Refining the Plan
- Step 6: Implementing the Plan
- Epilogue
- About the Authors
- Appendix 1: SOHO Equipment: The Complete Financials
- Appendix 2: Tips on Converting Your Company's Financials to the Financial Scoreboard
- Appendix 3: Our (Nonsacred) Financial Glossary and Why You Need a Sacred One
- Appendix 4: A Guide to Ratios
- Appendix 5: A History of the Mobley Matrix, by Louis B. Mobley
