In memory of my father, Harry Yale Fridson, who introduced me to accounting, economics, and logic, as well as the fourth discipline essential to the creation of this book—hard work!
M. F.
For Shari, Virginia, and Armando.
F. A.
“With a solid understanding of accepted accounting standards, one must peel through the fog generated by audited accounting numbers to get a clear picture of any company’s financial health.
Certainly, Fridson and Alvarez show us how to do just that. What I like best about the book is the authors’ ability to provide examples of real-life debacles discussed in the business press that could have been foreseen using the techniques explained in the book and having a healthy dose of skepticism. Their approach to analyzing financial statements should be commended.”—Ivan Brick
Professor and Chair, Finance and Economics Department, Rutgers Business School
“This book should be required reading for the seasoned investor and novice alike. Frid- son and Alvarez show, in a very readable format, that diligent analysis still can make a difference. Finally a book that covers not just the basics, but all the subtleties and everything that management doesn’t want you to know.”
—Robert S. Franklin, CFA
Portfolio Manager, Neuberger Berman, LLC
“Read it, digest it, and review it frequently. Fridson and Alvarez take you through financial statement analysis with many salient examples that expose hidden agendas and help with assessing the true value of securities.”
—Ron Habakus
Director of High Yield Investments, Brown Brothers Harriman
“Fridson and Alvarez clearly show why the most successful financial analysts approach their jobs with healthy doses of cynicism. Well written, insightful, and with numerable real life war stories, this book is required reading for all high yield bond analysts at AIG.”
—Gordon Massie
Managing Director, High Yield Bonds
American International Group Global Investment Advisors
“Fridson and Alvarez give financial analysts, accountants, investors, auditors and all other finance professionals something to chew over.
They succeed in illustrating the use of financial statement analysis with many astonishing real life examples. This book starts where others stop. Clearly, a must read that brings the reader beyond the pure number crunching!”—Marc J.K. De Ceuster
Professor at the University of Antwerp (Belgium) and Director of Risk Management at Deloitte & Touche
“Alvarez and Fridson have a real gift for expressing the concepts of finance in down-to- earth, understandable ways. The situations they choose, and the skillful way they lay out each example, make all the subtle relationships come to. They are real artists with spreadsheets that are easy for the reader to follow, and easy to adapt to new situations. For instant financial empowerment, buy this book and let Alvarez and Fridson ramp up your financial modeling skills.”
—John Edmunds
Director of the Stephen D. Cutler Investment Management Center at Babson College