Reading annual reports: From glancing to dissecting (part 2)

Annual reports are the only published documents that contain abundant information about a company’s performance. Reviewing the financial statements help to assess various aspects of the business performance and risk from a quantitative perspective. Financial analysts normally look at certain financial statement ratios for guidance to justify their concerns about:

  • Did the net profit rise or fall?
  • Is cash cycle rising or falling?
  • Is operating cash flow healthy?
  • Is gearing too high?
  • Is ROE improving or declining?
  • Is shareholders’ equity rising or falling?

Download whitepaper "Reading annual reports: From glancing to dissecting (part 2)" to get more details.