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.