What To Look For In Financial Reports?

J

Justin

New member
I have been investing in shares for about a year... I am also studying Business at uni, so Im learning about understanding the financial reports...
However, when I look through a report, I just see numbers and I don't really know what to do with them, or what to compare them to.. What should I be doing when through through the reports?

Thanks
 
Look at the following and note the trends from report to report:

1. Earnings
2. Return on equity
3. Return on investment
4. Ratio of debt to assets
5 Dividend pay out ration
6. Book value
 
You must be looking at the balance sheet. A financial reports gives you a detailed analysis of the business activities, its assets and liabilities and the profit made in a financial compared with those figures of the previous year.
 
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