Financial Ratios for Executives: How to Assess Company Strength, Fix Problems, and Make Better Decisions is a concise guide tailored for today's global executives, authored by Michael Rist, Albert J. Pizzica, and PENHAGENCO LLC. With a focus on making financial ratios understandable and actionable, this book serves as a valuable resource for both financial and non-financial executives seeking intuitive methods to evaluate corporate health and inform strategic decision-making.
Containing over 100 financial ratios and pertinent calculations, the book covers a spectrum of well-known ratios such as ROI, ROA, ROE, EVA, and debt-to-equity ratio, alongside lesser-known yet impactful ratios. Utilizing realistic financial and operational data from two fictional companies, each ratio explanation includes its type, formula, description, and examples based on either ABC Company or XYZ Company, supplemented with additional insights.
In addition to the comprehensive coverage of financial ratios, the authors include a section on capital budgeting, crucial for executives participating in budget meetings or discussions regarding capital allocation. This section elucidates essential finance tools like NPV, IRR, payback method, and total cost of ownership.
The book underscores the importance of financial acumen in the business world, asserting that those who comprehend the numbers emerge as leaders. Financial Ratios for Executives equips readers with the knowledge to leverage financial data to support initiatives, address challenges, identify opportunities, fortify company health, and excel in corporate settings.
Published in 2015 as the 1st edition by Apress, the book is available in English and includes an index for easy reference.
In essence, Financial Ratios for Executives empowers executives with the tools to navigate complex financial landscapes, enabling them to steer their organizations towards success through informed decision-making.