Core Concepts of Financial Analysis: A User Approach
May 2003, ©2004
Core Concepts of Financial Analysis has a user focus (not a preparer focus), based on a formal six-step process for analysis and decision-making. Giroux uses an external focus, with particular emphasis on credit and equity investment decisions.
The book is relatively short, but fairly comprehensive covering financial statements, accounting information, stock market information, economic and industry information, and other sources for recommendations and decisions. It assumes that students have a reasonable understanding of basic accounting and finance principles and attempts to expand from these to structure financial analysis for specific recommendations or decisions. The book is designed primarily for senior-level finance and accounting students, soon to be off to start financial analysis-related professions.
As part of the Core Concepts Series, Core Concepts of Financial Analysis can be adopted with Business Extra Select (www.wiley.com/college/bxs), a simple, seamless, online custom publishing process that allows instructors to combine the best business textbook resources from Wiley with other world class content and resources, from sources such as INSEAD, Ivey and Harvard Business School cases, Fortune, The Economist, or The Wall Street Journal, and much, much more. This Series combines the quality and effectiveness of Wiley Business publications with the flexibility to enrich the course with cases, readings, applications and other content. A Core Concepts text can be bound under one cover with any Business Extra Select CoursePack to create a custom-published book.
- Select from millions of journal articles, cases, readings from periodicals, newspapers, and other respected publication in the Business Extra Select databases,
- Combine with Wiley supplemental print and media products,
- Include your own materials, links or notes, or request copyright clearance for additional material.
An editorially-selected CoursePack for Core Concepts of Financial Analysis is available to be used as is, or can be modified to meet particular course needs.
Core Concepts of Financial Analysis is priced at $40.00 Net. When built into a custom book combining the text with Business Extra Select content, the price of the book is $30.00 Net plus the prices of the CoursePack content, a saving of $10.00.
About the Authors.
Chapter 1. What Is Financial Analysis?
Chapter 2. The Financial Environment.
Chapter 3. The Financial Statements.
Chapter 4. Quantitative Financial Analysis Using Financial Statement Information.
Chapter 5. Multiperiod Quantitative Financial Analysis.
Chapter 6. Quantitative Financial Analysis Techniques: Incorporating Market Information.
Chapter 7. An Accounting Analysis Perspective.
Chapter 8. Accounting Analysis: Specific Issues 1.
Chapter 9. Accounting Analysis: Specific Issues 2.
Chapter 10. Business Combinations.
Chapter 11. Capital Structure and Credit Risk.
Chapter 12. Credit Analysis.
Chapter 13. Equity Investment Analysis.
Dr. Giroux has published over fifty articles, including publications in Accounting Review, Journal of Accounting Research, Accounting, Organizations and Society, Journal of Accounting and Public Policy, and numerous other journals. He is the author of three earlier books, including Dollars & Scholars, Scribes & Bribes: The Story of Accounting. His primary research areas are governmental and financial accounting. He also is interested in accounting and business history.
He has a number of outside interests, including collecting revenue documents and stamps, reading, golf, and scuba diving. He and his wife Naomi travel regularly, in part based on international research projects and presentations.
- It has a user focus and emphasizes how to use financial tools to make informed credit and investment decisions (not how to prepare the documents).
- Concise presentation gives instructors flexibility to combine outside cases and problems for analysis.
- Emphasizes the valuable information and tools currently available on the Internet. Specific Web sites are listed throughout the book and summarized at the end. A comprehensive text Web site supports the text with additional exercises and problems, as well as sites to visit.
- Discussion of financial accounting and reporting standards included only where their understanding is necessary to interpret relevant information for decision making. Analysts need to know how to read pension footnotes, but do not need to be pension accounting experts for most decisions.
- A six-step approach is used for a systematic financial analysis process: Purpose of the decision, corporate overview, quantitative analysis techniques, detailed accounting analysis, a comprehensive analysis, the financial analysis decision or recommendation.
- Many current examples are used (current stock prices through July 2002), but 3 computer companies are used to illustrate key points for consistency: Dell, Compaq and Gateway.
- End of chapter material consists of key terms, financial ratio summary, discussion questions, problems (uses 3 chemical industry companies: DuPont, Dow, and PPG), cases (General Motors and Ford), and Internet exercises.