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by Ely Francis (Author)
Charts are living proof that "a picture is worth a thousand words." Charts provide management with an easily understood review of a company's past, present and projected future. This book explains how charts can be used most effectively, and how profits can be improved through a well-thought-out chart program. Many executives have difficulty in analyzing financial statements; they often have too little time to study interpretive reports. The solution to this major management problem of communication is a group of charts for total company, each division and the important product lines. These charts should review sales, costs, profits, percent to sales, return on investment, inventories and receivables. The annual periods covered will extend back five years and forward five years. The more current review will include monthly, quarterly and year-to-date information for last year, this year and next year. This book explains how the proper comparisons of operating results in chart form can alert management to unfavorable sales, cost, profit, inventory and receivable trends. It also explains how charts can effectively highlight the consequences of alternate courses of action. A series of charts and schedules, beginning with Chapter 5, illustrates how a company can utilize a simple chart program for controlling its sales and cost trends, and maximizing its profits. The charts not only depict a coordinated set of figures, but also serve to demonstrate different types of chart presentations. It must be recognized that space does not permit every type of chart variation; those used in this book are basic, easy to use, and are recommended for management action. It was also considered impractical to portray how each month, each quarter and each year would appear in each type of chart. These refinements would follow a normal course in constructing a coordinated set of charts. Charts are a very important management tool and this book explains how best to use them.
