Annual reports are of extreme importance to a company because it contains information on the finances of the past year, the company's triumphs and troubles and their goals for the short- and long-term future.
The annual report is usually printed out in a glossy 4-color booklet, with compatible online version. They are carefully written and designed for maximum impact. The annual report will usually contain information on the state of the business over the last fiscal year, as well as emphasize ways that the company is fulfilling the goals set last year.
A company annual report will usually begin with a message from the company president or CEO. Sometimes this is in the form of a letter or more formal, such as an analysis. The introductory information of an annual report also includes a mission statement and perhaps descriptive text outlining the company's history.
The most important part of the annual report is the financial highlights of the past year, portrayed through graphs, charts and text. The stockholder information will also be included, listing instructions on how and where to purchase stock, dates for stockholders' meetings, and the exchanges where the company stock is traded.
Another important part of the annual report is the formal financial statements. A statement of earnings, a statement of cash flow and the statement of financial position are all included and they provide supplementary information relating to the company finances. These three reports are required by the SEC to be distributed to interested parties annually.
Other information that is often included in a company's annual report is a list of the heads of the company, such as the board of directors and key management personnel. An auditor's report is often included to verify that the financial situation represented in the report is true. A potential investor, financial analyst or shareholder can glean plenty of information from a well-done annual report.
 | Learn how to gauge the financial health of a company through an annual report. |
 | Annual reports are your pipeline directly into company objectives and performance. If you're considering investing in a company, or want to know how your investment is doing, an annual report is the first place you should look. What can you learn from an annual report? You might be surprised. |
Even if you are an avid investor, nothing is more boring than a company's annual report. Reading an annual report is like eating your veggies. Luckily, unlike eating your veggies, you can skim an annual report for crucial information. |
Corporate annual reports provide investors with a wealth of information, combining a company's yearly financial performance along with the company's commentary on both past and present performance. Before investing in a company, you should obtain a copy of the company's annual report and read it thoroughly in order to get a better feel on the company and its current situation. |
When it comes to writing a business report, knowing the intended audience is critical in determining how to proceed, and then making sure the finished product meets the readers' expectations. More than likely, your boss assigned you the project of preparing the report for analyzing the business, and you need to start by making sure you know what their goal is in having you prepare the report. |
