Book Review: Financial Statement Analysis: A Practitioner’s Guide, Fernando Alvarez and Martin S. Fridson (Wiley Finance Series, 5th Edition (April 2022), Pages: 448).

Abstract

The skill of understanding and analyzing financial statements is essential for business professionals, market practitioners, and investors since it deep dives into the evaluation of the financial health and stability of a business. As a concept, analyzing financial statements may be fundamental since it involves scrutinizing financial reports, both published and unpublished, to review, evaluate, and interpret the company's performance in terms of profitability, liquidity, solvency, and efficiency. Still, it stood the test of time and remains relevant since the business itself and the stakeholders can recognize the strengths and weaknesses of the firm, which helps to make strategic financial decisions irrespective of location, size, and the sector in which the business is operating. Therefore, a helpful workbook to guide the user in assessing the financial statements is required promptly.