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The Bottom Line
The Interpretation of Financial Statements is a wonderful reference guide for those who want to understand published financial statements and reports. Although some of the information is slightly out of date, you can be sure this book will still be useful in twenty years.
Pros
- Offers an explanation of the most common terms found on financial statements
- Gives ratios and formulas for investors to calculate
- Includes many examples
Cons
- Some of the information is dated due to changes in accounting rules
- The reader should have a working knowledge of stocks
Description
- Small, easy to carry edition with classic typeface.
- Makes an excellent business gift for clients and colleagues.
- Published by Harper Collins.
Guide Review - Interpretation of Financial Statements, The
Although often overlooked, Graham's Interpretation of Financial Statements is undoubtedly as important as his other works (which include Security Analysis and The Intelligent Investor.) While a relatively slim 122 pages, Graham manages to successfully detail and explain the meaning of concepts such as book value, liquidation value, reserves, and the current ratio. I personally have a copy sitting on my desk.
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