The Comprehensive Guide on How to Read a Financial Report: Wringing Vital Signs Out of the Numbers, + Website

PREFACE

When TOP (i.e., the Old Pro, aka John A. Tracy) and myself were approached by John Wiley & Sons about expanding and enhancing How to Read a Financial Report, at first I was taken aback. I mean honestly, how does one improve on a book that has been in publication for more than 30 years, has sold 300,000-plus copies (and counting), is now in its eighth edition, and is widely referenced as the benchmark when it comes to helping readers from all walks of life clearly and concisely understand the complex world of financial reports? Then it occurred to me that attempting to improve the book was not the goal but rather the idea was to expand or enhance the book in an effort to achieve three primary goals.

First, to transition the material and subject matter into a format that is more user friendly from an “e” (electronic or digital) perspective. A number of features have been incorporated to improve the interactivity of the material by incorporating hotlinks on important subject matter; referencing current events of significance; highlighting critical concepts, terminology, and tips; and building in a web-based TMK, or test my knowledge section, to provide positive feedback on key material in a real-time fashion.

Second, to empower the readers and extend their knowledge of financial reports and statements to identify potential problems, inconsistencies, errors, and irregularities within the financial information presented. The idea is to move beyond simply understanding the basics ...