Annual Reports

[stargazer]

Hi

Is there specific key data in the Annual Reports to get an understanding of a company like a generic process in laymans terms that can be applied to all companies.

How the company is travelling along.

Is the share price in line with its value etc

Got my Oxiana AR and can't make headway with it.


Cheers
SG

 

[stoxclimber]

here are some general guidelines:

for a company you are researching
- read the information provided about the companys operations to get a feel for what the business is like
- check out the financial statements and look at %age changes and ratios, check to see if the company is artificially inflating earnings through capitalising things that should be expensed etc.
- check the cash flow statement of the company and the cash balance
(all this will probably involve reading the notes where applicable as well)
- if you notice any problems with the company, see if management is taking them seriously or trying to gloss over (or even worse not even mention)

for a company you own
- you probably have a general idea of what the company is about and the key areas that company perforamnce is leveraged on. check the financial statements for these items, check the notes for further info, and skim over the activities reports..



of course it all depends on the company..but everyone investing in a firm should know how its going to make money, what are the key drivers of that, and what are the risks - and look for according info