It is a document prepared by an analyst who is part of the investment research team of any firm. Basically, these reports help the active people in business to invest wisely and in the company, which is stable and best for them.
These annual reports are read by investors and stakeholders so that they can be updated with each fiscal year’s information.
Annual reports are very important for any business as they can analyze the performance of the year and help in improvising the next action plans for better opportunities. The main objective of creating this report is to create an accurate profile of the company.
Making of a Company Research Report?
Here are some key points which can tell how to make an annual report and what it consists of.
A. Identification: The very first step is to know what the company is all about and its core skills.
B. An Overview: The next ingredient is to profiling the company, or you can say a summary of what the company does, history, profit, location, contact details, product, and services.
C. The Online Presence of Company: A company’s online presence such as it’s official website or social media channels has a plethora of information about the working style of the company or how they want to express themselves to the world.
D. In-Depth Research: While researching the company, it is very important to see the company’s current situation. By the latest articles published in the magazine or by some news sources.
E. Financial and Market Performance: It is essential and practices for any company to issue quarterly and annual reports, which consist of information regarding balance sheet, income statement, and cash flow statement. And that is how they can tell the world about their financial soundness.
F. Investment Research Reports: Many companies hire the analyst just for making the investment report and send it to the world. And these investment reports can be found through many online sources.
G. A Company’s Strategy: The company’s annual report also consists of a detailed analysis of strategy, operating, marketing, global supplies, and many more such things. You can find the company’ s strategy in the annual report, filed with securities and exchange commission.
H. Analyze: After gathering all the information, the next part, which comes is to analyze the information. For that, there are various tools and professionals available to help you get a clear picture.
And the last thing after analyzing the information is to compile the data in an unambiguous manner, and that is how you can conclude theannual report, which leaves you with detailed, accurate, and well-researched data.
The key ingredients of Company Research Report:
- Financial History: An annual report includes an economic history of over 5 years. This financial history data can be present in the form of ratio analysis, charts, graphs, and time series. Why is this financial history of over five years important? Because it helps in creating a stable profile of the company, which helps in assessing whether the company is suitable for future investment or collaboration.
- Shareholders: To understand the company’s investment pattern, it is crucial to have the well-researched data of shareholders.
- Directors and Key Persons: Before taking any significant business decision, it is essential to know the company’s key position. A Company Research Report should have information about directors, management, and all the other key persons.
- Ratio Analysis: Ratio analysis helps in understanding the general working of the company and also information about the growth of the company. In short, it helps in understanding the annual functioning of the company.
- Mortgage: This gives an accurate picture of the company’s current status and its standing in the market. Basically, this is about all the charges on the assets of the company.
Hence the Company Research Report offers the analysis ratio of the company, which briefly shows the information of each section like leverage ratios, liquidity ratios, and performance ratios. Or you can say this market research, investment/financial reports bring the understanding of a company’s status and credibility. These reports also consist of the information of employees, net worth and turnover of the company.