3Nearly every business decision calls for a clear understanding of the underlying numbers. A manager needs this information to understand how well a business unit is performing, whether a new venture can achieve a reasonable profit, how much debt to take on, and so forth. Financial Analysis can assist with these decisions by focusing on the key indicators in a business that will drive its future performance. It does so by describing how to extract meaningful information from financial statements. It also delves into a number of analyses that are linked to specific business decisions, such as price optimization, constraint management, and credit granting. Another area addressed is financing, where the book covers financial leverage, capital structure, and foreign exchange risk. Other topics include financial forecasting, discounted cash flow analysis, and the valuation of acquisitions. In short, Financial Analysis is the essential desk reference for anyone who wants to make better-informed decisions.