Well we often have been very much confused about how to read a Annual report as the volume of the report is too big. But the real problem is not the volume of it but it is us who do not know what information we should look for from a Annual report. I am here trying to jot down a number of things that I do look inside a Annual report .
Sales Growth :-
Sales growth data is available in balance sheet but this might not reflect exact efficiency of the company as we have to know whether this growth achieved by increasing price or increasing the sales volume. For this data we have to look down to the Annual Report and must have to make sure for the past decade the company has achieved this growth by a continuous and stable growth in both value(Price increase) and Volume (Quantity sold).
Capacity Growth :-
We also have to look for whether it has increased it's production capacity to a significant level to meet up the future demand which is also available in the Annual Report.
Promoter Salary & Remuneration :-
This part also we can find from Annual Report of Investor relationship section. Which is very important to compare with PAT and Sales.
Project Execution Skill :-
Though not much information available in the report but by means of a comparative quantitative analysis one can found it. Like comparing the sales volume growth with the production capacity growth.
Days of Receivables Outstanding :-
Thus ratio also can be found in the annual report and we can have an estimate on this historically. Lower is always good.[also can be found from morning star]
Sales Growth :-
Sales growth data is available in balance sheet but this might not reflect exact efficiency of the company as we have to know whether this growth achieved by increasing price or increasing the sales volume. For this data we have to look down to the Annual Report and must have to make sure for the past decade the company has achieved this growth by a continuous and stable growth in both value(Price increase) and Volume (Quantity sold).
Capacity Growth :-
We also have to look for whether it has increased it's production capacity to a significant level to meet up the future demand which is also available in the Annual Report.
Promoter Salary & Remuneration :-
This part also we can find from Annual Report of Investor relationship section. Which is very important to compare with PAT and Sales.
Project Execution Skill :-
Though not much information available in the report but by means of a comparative quantitative analysis one can found it. Like comparing the sales volume growth with the production capacity growth.
Days of Receivables Outstanding :-
Thus ratio also can be found in the annual report and we can have an estimate on this historically. Lower is always good.[also can be found from morning star]
No comments:
Post a Comment