The Interpretation of Financial Statements
About the Book
The Interpretation of Financial Statements is a classic finance book by Benjamin Graham and Spencer B. Meredith that introduces readers to the fundamentals of understanding company financial reports. Written in a clear, non-technical style, the book explains how to read and analyze the three core statements—the income statement, balance sheet, and cash flow statement—to assess a company’s profitability, financial position, and stability.
The book focuses on practical interpretation rather than complex accounting theory, teaching readers how to spot strengths, weaknesses, trends, and warning signs in a business. It also discusses key financial ratios, the importance of consistency, and how accounting methods can affect reported results. Aimed at beginners and investors alike, it serves as a concise guide to making more informed investment and business decisions by truly understanding what financial statements reveal.