Key Management Ratios: Master the Management Metrics that Drive and Control Your Businees

by Ciaran Walsh

With over 33,000 copies sold, Key Management Ratios is a market “classic”. This new edition is re-packaged with a new jacket design to revitalise the Key Management brand and new two-colour internals make it more readable and visually appealing. Key Management Ratios is an antidote to any fear of finance. Drawing data from 200 companies worldwide, the book brings clarity and simplicity to its explanation of every measure and shows how they all link together to drive your business. From cash flow and profit to ROI and ROTA, its unique approach remains as classic as ever, bringing a simple and visual understanding to a complex subject.

Genres: Business, Management, Finance, Reference, Economics

Paperback

First published January 1, 1994

Reviews

[Еміль Ісаєв · Rating 4 out of 5]

Особисто мені було складно читати цю книгу. Проте це через те, що в ній багато фінансових показників, які наразі досить важкі для мене. А деякі взагалі не на часі. Я дізнався багато фінансової інформації. Зустрічав терміни, які знав і було цікаво зрозуміти їх сутність і важливість для бізнесу. Всім власникам бізнесу однозначно рекомендую цю книгу для прочитання.

[David Hurst · Rating 5 out of 5]

Best book on finance in business for non specialist. Simple explanation and memorable diagrams

[Said AlMaskery · Rating 3 out of 5]

Very useful guide ... it simplifies accounting to the extent you feel comfortable analyzing financial statements.

[Paula · Rating 3 out of 5]

I found this book to be interesting to read. Below is an outline of what was covered, mainly for my own reference:
• Part One covers financial statements, liabilities, fixed assets, and the balance sheet.
• Part Two covers operating performance such as ROI (return on investment), ROE (return on equity), ROTA (return on total assets), and Operating Profit Model.
• Part Three covers corporate liquidity so the chapters cover cash flow cycle, liquidity (current ratio, quick ratio, working capital to sales ratio, working capital days), and financial strength (debt to equity ratio D/E). I found Quick Ratio to be interesting and it's basically (CurrentAssets-Inventory)/CurrentLiabilities. Current ratio is CurrentAssets/CurrentLiabilities. Both of these ratios look at short-term liquidity.
• Part Four looks at corporate value. The chapters covers corporate valuation (including share values), financial leverage (market to book ratio, V chart), and growth (growth equilibrium).
• Part Five looks at management decision-making and the chapters covered are cost/volume/price relationships, investment ratios, shareholder value added (SVA), acquisition analysis, and integrity of accounting statements which seems to be more about concepts than ratios.

Overall I found this to be an interesting read.

[Andrey · Rating 5 out of 5]

I needed to refresh my knowledge of financial accounting and ground it in my current work situation. The last time I systematically learned about finance was decades ago in university.

When my recommendations shelf suggested this book, I was skeptical at first. After all, how could a book written when I was still in school (which means I could have read it as a student without time travel) help refresh my knowledge? But it turned out to be written so clearly, simply, and in such a well-structured way that it completely met my needs. Yes, I realize this simplicity and clarity comes with some trade-offs — significant simplifications and cutting corners. But the book succeeds in building a working mental model, which is exactly what you want from this kind of book.
Highly recommend.

[Sura Siri · Rating 5 out of 5]

Rere Item ของหนังสือสำหรับนักลงทุนสายคำนวณ เมื่ออ่านจบแล้วส่วนตัวรู้สึกว่ามีเนื้อหามีความรู้เกี่ยวกับการลงทุน 20-30% เนื้อหาส่วนอื่นจะเกี่ยวกับการปูพื้นฐานทางด้านการอ่านงบการเงินและการวิเคราะห์ปรับปรุงกิจการจากจุดที่ดีให้ดียิ่งขึ้น หรือจากจุดที่แย่ควรปรับปรุงที่ตรงไหน แล้วได้ผลอย่างไรต่อ ผู้เขียนเป็นเชี่ยวชาญในเรื่องงบการเงิน เขาสามารถชำแหละค่าอัตราส่วนมากระจายเป็นจุดย่อยๆ เพื่อดูที่มาของผลกระทบในแต่ละจุดย่อยนั้นๆที่มีผลต่อกิจการ และที่น่าสนใจอีกเรื่องคือเมื่อผู้เขียนอธิบายค่าอัตราส่วนทางการเงินต่างๆ พร้อมทั้งให้ค่าตัวเลขที่เหมาะสมแล้ว เขาค้นคว้าทำแผนภูมิแท่งเปรียบ ค่าอัตราส่วนต่างๆทางการเงินของประเทศตัวอย่างหรือเจาะลึกไปในแต่ละอุตสาหกรรมด้วย

[Grace Olivia · Rating 5 out of 5]

really good book! this book is recommended by my lecturer to help non-finance background student to grasp the concept of financial ratio in making a decision.
the explanation is easy to understand with some example and figures to help you understand the concepts.

[mdy · Rating 5 out of 5]

I found this book invaluable because I do not have a business degree but was working on a project where more than just a basic understanding of corporate financials was needed.

It is crisp, clear, and methodical in its approach for teaching financial concepts. Goes into enough detail to make sure you understand the nuances, but stays big picture enough so you don't get overwhelmed or feel like you're attending an accounting class.

[Mohamed · Rating 4 out of 5]

A great book for who does not have financial background, or study Financial management