Magic Numbers: The 33 Key Ratios That Every Investor Should Know

Features

• Cover Type: Hard Cover with 228 pages
• Published by: Wiley
• Edition: 1st Edition December 14, 2001
• Written in: English
• ISBN 10 Number: 0471479241
• ISBN 13 Number: 978-0471479246
• Book Dimensions: 10.2 x 7.3 x 0.9 inches
• Weighs: 1.5 pounds

Product Review
In Magic Numbers, investment analyst Peter Temple provides a straightforward primer to calculating and interpreting 33 key investment ratios. The book is organized into five sections that explain market-based ratios (e.g., market capitalization, P/E ratios), income statement ratios (margins, earnings per share), balance sheet rations (price/cash ratio, burn rate), cash flow ratios, and risk and volatility ratios. Each chapter clearly shows the inputs necessary to calculate a particular ratio and explains its relevance in evaluating a company's performance. Recommended for serious investors. --Harry C. Edwards

Product Review
Book of the Week, "investors online or otherwise who want to develop the skills used by financial analysts, will find it hard to go wrong with Magic Numbers." (Sunday Times, 13 January 2002)

"very good choice. In just a few pages, each written and laid out with admirable clarity, Temple walks us throughfinancial measures. I wish I had this book years ago." (BusinessWeek, February 11, 2002)

"Magic Numbers elevates itself to more than a mere reference book - it becomes a modern day rallying cry for Enlightenment-style rationalism that would make even David Hume proud." (Portfolio International, February 2002)

"websitedoes contain useful downloadable worksheets, calculators and links" (Gulf Business, April 2002)

Reader Reviews
Peter Temple's MAG1C NUM8ERS is a straightforward introduction and useful reference tool for the serious investor on this topic. At the core of fundamental analysis are financial ratios that are essentially measuring tools for reaching a better understanding of a company's strengths and weaknesses. Temple's book manages to take some of the mystery out of these 'Magic' numbers by assembling them in one place. Here we have an organized summary of thirty-three key financial ratios. With each one we get a) definition b) the formula c)where we can find the numbers d) how the ratio can be calculated e) a specific corporate example and f) what relevance the measurement has for investors. The predictable organization of the book means it is an easy reference to flip open when we need to refresh our understanding of a useful ratio. Temple's observations about applying particular ratios to specific kinds of companies are helpful. I, for one, would like to have have received even more help in this area. Temple is British and many of his examples are drawn from companies US investors will not warm-up to such as Singapore Telecom, UK retailer Kingfisher, or the German utility company RWE. I'd recommend reading this book with the financial statements for a couple of favorite companies in hand to make the application of the ratios more relevant. Working your way through the jungle of numbers and verbiage for a company an investor owns with a few of Temple's ratios will contribute to an informed opinion of that business. Comment | | (Report this)