As an investor, what would you look for in an annual report? Why are the notes...

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Finance

As an investor, what would you look for in an annual report? Whyare the notes to the financial statements so important?

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An Annual Report of any companys is a comprehensive report on all the activities done by company throughout the preceding year Shareholderscreditorsbankers and other interested parties use annual report to understand financial performance of the companyInvestors will want to see in a companys financial statements before they will invest or loan to the business Annual report consist of following things which investors carefully go through 1 Financial statement financial statements will reveal a companys Net Profit Sales Financial interest coverage ratioetc The Net profit is that a business has left over after paying all expensesAny investors wants to see company profitunsustainable profit are badtracking profitability is must before investing anything into businessAs an investor analyses of Profit sales growth in upward movement gives green signal to invest in the business 2Cash Flow In businesscash is like a blood to function whole operation of businessAs an investor view of cash in the bank See Answer

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