What to read in Annual reports of the company? - Answered

Forums > raja on 9/22/2020 | VIews: 100

Annual reports contains hundreads of pages, going through each pages is a tedious tasks and in most cases its not possible and not feasible also. Most of the pages contains generic information to meet the guidelines set by government bodies.

To better utilize the time and get gist of the company, focus on following points

  1. Chairman's/Managing Director's message to Shareholders

  2. Financial Highlights 

  3. Management Discussions and Analysis report

  4. Consolidated Balance Sheet (standalone balance sheet gives half information)

  5. Cash flow statement (most important)

    1. Do not trust on what is written as profit in Profit & Loss statement, if the profit is not converting into cash and displayed into Cash flow statement.

    2. Ideally, CFO (Cash from Operative activities) should be greater than CFI (Cash from Investing) + CFF (Cash from Financing) ie CFO > CFI+CCF

    3. Read more about Cash flow and other related topics here (Cash flow topic of this article).

Hope this helps.

Disclaimer: This post is for educational purpose.


No answer found.

Your Reply


Post as a guest

Username
Email
Valid email id only.

Latest Forums




Website disclaimer: The views, opinions, investment advices (if any) expressed by author on Sharefunda.com are their own and not that of the website or its management. Users are advised to contact certified financial advisor before making investment decisions.

Get notification for new forum post

Delivered by FeedBurner


 

 

Best Practices

  • Do not borrow and invest.
  • Do not invest all your money in Share Market.
  • Do not invest all investible money in one company/sector.
  • Do not invest for short term.
  • Should follow SIP approach for investing
  • Do not blindly trust on multibagger tips or recommendations in media however get clue from them, research on your own, and then invest.

+ Educational drive from ShareFunda

Disclaimer
This website doesn't encourage quick money making tips and tricks, quick multibagger call etc. Please refrain from posting such messages. If you found any such message, kindly let us know and we will take appropriate action.

We do not have any paid calls, groups or channels.

Latest Articles


Latest Portfolios


Latest Thoughts