The book Inc. magazine calls one of "the best, clearest guides to the numbers" on the market.

Inc. magazine calls it one of "the best, clearest guides to the numbers" on the market. Readers agree, saying it's exactly "what I need to know" and calling it a "must-read" for decision makers without expertise in finance.

Since its release in 2006, Financial Intelligence has become a favorite among managers who need a guided tour through the numbers--helping them to understand not only what the numbers really mean, but also why they matter.

This new, completely updated edition brings the numbers up to date and continues to teach the basics of finance to managers who need to use financial data to drive their business. It also addresses issues that have become even more important in recent years--including questions around the financial crisis and those around broader financial and accounting literacy.

Accessible, jargon-free, and filled with entertaining stories of real companies, Financial Intelligence gives nonfinancial managers the confidence to understand the nuance beyond the numbers--to help bring everyday work to a new level.

Table of Contents

Part 1: The Art of Finance (and Why It Matters)

Chapter 1: You Can't Always Trust the Numbers

Chapter 2: Spotting Assumptions, Estimates, and Biases

Chapter 3: Why Increase Your Financial Intelligence?

Chapter 4: The Rules Accountants Follow--and Why You Don't Always Have To

Part 1 Toolbox

Part 2: The (Many) Peculiarities of the Income Statement

Chapter 5: Profit Is an Estimate

Chapter 6: Cracking the Code of the Income Statement

Chapter 7: Revenue

Chapter 8: Costs and Expenses

Chapter 9: The Many Forms of Profit

Part 2 Toolbox

Part 3: The Balance Sheet Reveals the Most

Chapter 10: Understanding Balance Sheet Basics

Chapter 11: Assets

Chapter 12: On the Other Side

Chapter 13: Why the Balance Sheet Balances

Chapter 14: The Income Statement Affects the Balance Sheet

Part 3 Toolbox

Part 4: Cash Is King

Chapter 15: Cash Is a Reality Check

Chapter 16: Profit Does Not Equal Cash

Chapter 17: The Language of Cash Flow

Chapter 18: How Cash Connects with Everything Else

Chapter 19: Why Cash Matters

Part 4 Toolbox

Part 5: Ratios: Learning What the Numbers Are Really Telling You

Chapter 20: The Power of Ratios

Chapter 21: Profitability Ratios

Chapter 22: Leverage Ratios

Chapter 23: Liquidity Ratios

Chapter 24: Efficiency Ratios

Chapter 25: The Investor's Perspective

Part 5 Toolbox

Part 6: How to Calculate (and Really Understand) Return on Investment

Chapter 26: The Building Blocks of ROI

Chapter 27: Figuring ROI

Part 6 Toolbox

Part 7: Applied Financial Intelligence: Working Capital Management

Chapter 28: The Magic of Managing the Balance Sheet

Chapter 29: Your Balance Sheet Levers

Chapter 30: Homing In on Cash Conversion

Part 7 Toolbox

Part 8: Creating a Financially Intelligent Company

Chapter 31: Financial Literacy and Corporate Performance

Chapter 32: Financial Literacy Strategies

Chapter 33: Financial Transparency: Our Ultimate Goal

Part 8 Toolbox

Review

"Nonfinancial managers will appreciate this nontechnical, in-depth guided tour through financial statements and financial concepts and analysis. -- Choice Magazine

About the Authors

Karen Berman and Joseph Knight are the founders of the Los Angeles-based Business Literacy Institute. They train managers at organizations such as American Express, P&G, Pacific Life, GM and Tyco International. They have been interviewed in a wide range of print media including BusinessWeek, USA Today and the Los Angeles Times.