Chapter 2
How Investors Read a Financial Report
In This Chapter
Looking after your investments
Keeping financial reports private versus making them public
Using ratios to understand profit performance
Using ratios to interpret financial condition and cash flow
Scanning footnotes and identifying the important ones
Paying attention to what the auditor has to say
In reading financial reports, directors, managers, business owners and investors need to know how to navigate through the financial statements to find the vital signs of progress and problems. The financial statement ratios explained in this chapter point the way – these ratios are signposts on the financial information highway. You can also keep abreast of business affairs by reading financial newspapers and investment magazines, and investment newsletters are very popular. These sources of financial information refer to the ...
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