Includes bibliographical references (p. [265]-266) and index.

Part one: The art of finance (and why it matters). You can't always trust the numbers
Spotting the assumptions, estimates, and biases
Why increase your financial intelligence?
The rules accountants follow- and why you don't always have to
Part one toolbox: getting what you want; the players and what they do; reporting obligations of public companies
Part two: The (many) peculiarities of the income statement. Profit is an estimate
Cracking the code of the income statement
Revenue: the issue is recognition
Costs and expenses: no hard-and-fast rules
The many forms of profit
Part two toolbox: Understanding variance; profit at non-profits; a quick review: "percent of" and "percent change"
Part three: The balance sheet. Understanding balance sheets basics
Assets: more estimates and assumptions (except for cash)
On the other side: liabilities and equity
Why the balance sheet balances
The income statement affects the balance sheet
Part three toolbox: Expense? or capital expenditure?; the impact of mark-to-mark accounting
Part four: Cash is king. Cash is a reality check
Profit [does not equal] cash (and you need both)
The language of cash flow
How cash connects with everything else
Why cash matters
Part four toolbox: Free cash flow; even the big guys can run out of cash
Part five: Ratios: learning what the numbers are really telling you. The power of ratios
Profitability ratios: the higer the better (mostly)
Leverage ratios: the balancing act
Liquidity ratios: can we pay our bills?
Efficiency ratios: making the most of your assets
The investor's perspective: the "big five" numbers and shareholder value
Part five toolbox: Which ratios are most important to your business?; the power of percent of sales; ratio relationships; different companies, different calculations
Part six: How to calculate (and really understand) return on investment. The building blocks of ROI
Figuring the ROI: the nitty gritty
Part six toolbox: a step-by-step guide to analyzing capital expenditures; calculating the cost capital; economic value added and economic profit-putting it all together
Part seven: Applied financial intelligence: working capital management. The magic of managing the balance sheet
Your balance sheet levers
Homing in on cash conversion
Part seven toolbox: Accounts receivable aging
Part eight: Creating a financially intelligent company. Financial literacy and corporate performance
Financial literacy strategies
Financial transparency: our ultimate goal
Part eight toolbox: Understanding Sarbanes-Oxley
Appendix: Sample financials.

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.