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How Annual Reports Communicate To Stockholders

1. The annual report is a primary document used by public limited companies to reveal desired corporate information to shareholders. It incorporates financial analysis of the company through financial data gathered annually. 2. The annual reports can display the appropriate utilization of shareholders' investment in the company. They can learn about the proper allocation of their investment in needed business strategies. 3. There are many ratios provided in the annual report that give an overall picture of the well-being of a particular company, such as gross profit margin, current ratio, quick ratio, debt to total equity, gearing ratio, and return on equity. These ratios are meant to provide the financial stability of the company.

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Muhammad Ramiz Amin
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18 views

How Annual Reports Communicate To Stockholders

1. The annual report is a primary document used by public limited companies to reveal desired corporate information to shareholders. It incorporates financial analysis of the company through financial data gathered annually. 2. The annual reports can display the appropriate utilization of shareholders' investment in the company. They can learn about the proper allocation of their investment in needed business strategies. 3. There are many ratios provided in the annual report that give an overall picture of the well-being of a particular company, such as gross profit margin, current ratio, quick ratio, debt to total equity, gearing ratio, and return on equity. These ratios are meant to provide the financial stability of the company.

Uploaded by

Muhammad Ramiz Amin
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Running head: ANNUAL REPORTS AN ANALYSIS 1

How Annual Reports Communicate to Stockholders


Ramiz Amin
Institute Of Business Management
Auth! Nte
I a"#n$%edge that this is m& $n !esea!"h and I am s%e auth! f this $!iting' I ha(e
"%%e"ted the su!"es f!m se(e!a% )u!na% a!ti"%es* !esea!"h +a+e!s and the! usefu% $e,sites'
ANNUAL REPORTS AN ANALYSIS -
A,st!a"t
The annua% !e+!t is a +!ima!& d"ument that is main%& used ,& the +u,%i" %imited "m+anies t
!e(ea% the desi!ed "!+!ate inf!matin t the st"#h%de!s' It in"!+!ates finan"ia% ana%&sis f
the "m+an& th!ugh the finan"ia% data that is gathe!ed n annua% ,asis' Su"h finan"ia% data is
main%& e.t!a"ted f!m the "m+an&/s "ntinuing +e!atins* inf!matin !e%ated t the s+e"ifi"
ma!#et segment* ne$ +!du"t ideas* the! se"nda!& a"ti(ities* and e.+enditu!e !e%ated t
!esea!"h and de(e%+ment 01mmissin* -2134' The annua% !e+!ts "an dis+%a& the a++!+!iate
uti%izatin f sha!eh%de!/s in(estment in the "m+an&' The& "an "me t #n$ a,ut the +!+e!
a%%"atin f thei! in(estment in needed "ateg!ies f ,usiness' This "an then %et them #n$
a,ut the +!fita,i%it& f thei! in(estment in the ,usiness th!ugh the !esu%ts and ana%&sis f
finan"ia% inf!matin +!(ided f!m the "m+an& in the f!m f a d"ument and that is $hat an
annua% !e+!t is meant f!' The& "an a%s "me t #n$ as t $hi"h segment f the ,usiness is
nt +!(iding the "m+an& $ith ade5uate +!fits and that it shu%d ,e e!adi"ated f!m the
"m+an&/s "!e ,usiness' The& "an "me t #n$ a,ut the ma!#et inf!matin $hi"h "an
!ef%e"t (a!ius in(estment needs and* then the& in(est a""!ding%&' The!e a!e man& !atis that a!e
+!(ided in the annua% !e+!t that gi(es a sund +i"tu!e f the $e%%6,eing f an& +a!ti"u%a!
"m+an&' Sme !atis in"%ude g!ss +!fit ma!gin* "u!!ent !ati* 5ui"# !ati* de,t t tta% e5uit&*
gea!ing !ati and !etu!n n e5uit& et"' These !atis a!e meant t +!(ide ne thing and that
in"%udes the finan"ia% sta,i%it& f the "m+an& as t h$ $e%% the& a!e +e!f!ming in te!ms f
,usiness +e!atins and management'
Keywords: st"#h%de!s* ma!#et* segment* +!du"t* !ati
ANNUAL REPORTS AN ANALYSIS 3

Refe!en"es
1mmissin* U' S' 0-2134' US Securities and Exchange Commission' Ret!ie(ed f!m
htt+:77$$$'se"'g(7ans$e!s7ann!e+'htm

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