MANAGERS IN EVERY BUSINESS are expected to use financial data to make decisions, allocate resources,and budget expenses. But the truth is, many are uncomfortable applying the most basic financial tools in their day-to-day work. Even managers who consider themselves financially savvy may not understand what goes into a financial statement, and so may take the numbers as gospel when they should be questioning them.

   Preface: What is Financial Intelligence?

PART ONE

THE ART OF FINANCE (AND WHY IT MATTERS)

 1. You Can't Always Trust the Numbers

 2. Spotting Assumptions, Estimates, and Biases

 3. Why Increase Your Financial Intelligence?

 Part One Toolbox

PART TWO

THE (MANY) PECULIARITIES OF THE INCOME STATEMENT

 4. Profit Is an Estimate

 5. Cracking the Code of the Income Statement

 6. Revenue: The Issue Is Recognition

 7. Costs and Expenses: No Hard-and-Fast Rules

 8. The Many Forms of Profit

Part Two Toolbox

PART THREE

THE BALANCE SHEET REVEALS THE MOST

 9. Understanding Balance Sheet Basics

10. Assets: More Estimates and Assumptions (Except for Cash)

11. On the Other Side: Liabilities and Equity

12. Why the Balance Sheet Balances

13. The Income Statement Affects the Balance Sheet

 Part Three Toolbox

PART FOUR

CASH IS KING

14. Cash Is a Reality Check

15. Profit ≠　Cash (And You Need Both)

 16. The Language of Cash Flow

 17. How Cash Connects with Everything Else

 18. Why Cash Matters

 Part Four Toolbox

PART FIVE

RATIOS: LEARNING WHAT THE NUMBERS ARE REALLY TELLING YOU

 19. The Power of Ratios

 20. Profitability Ratios: The Higher the Better (Mostly)

 21. Leverage Ratios: The Balancing Act

 22. Liquidity Ratios: Can We Pay Our Bills?

 23. Efficiency Ratios: Making the Most of Your Assets

  Part Five Toolbox

PART SiX

HOW TO CALCULATE (AND REALLY UNDERSTAND) RETURN ON INVESTM

24. The Building Blocks of ROI

25. Figuring ROI: The Nitty-Gritty

 Part Six Toolbox

PART SEVEN

APPLIED FINANCIAL INTELLIGENCE: WORKING CAPITAL MANAGEMENT

26. The Magic of Managing the Balance Sheet

27. Your Balance Sheet Levers

28. Homing In on Cash Conversion

 Part Seven Toolbox

PART EIGHT

CREATING A FINANCIALLY INTELLIGENT DEPARTMENT (AND ORGANIZATION)

29. Financial Literacy and Corporate Performance

30. Financial Literacy Strategies

31. Financial Transparency: Our Ultimate Goal

Part Eight Toolbox

  Appendix: Sample Financials

  Notes

  Acknowledgments

  Index

  About the Authors