Accounting

The Interpretation of Financial Statements

Benjamin Graham and Spencer B. Meredith

The Interpretation of Financial Statements is a small book with a serious purpose. It shows how the income statement, balance sheet, and other financial reports fit together. I like it because it teaches the reader to look for a story in the numbers instead of staring at three separate pages. The examples from 1937 and the investor-level detail go farther than a typical owner needs. Even so, the basic questions about cash, debt, profit, and financial health remain useful. A sellable business should make those answers easy for a future buyer to find.

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