Reading company reports
Ever wondered what analysts are talking about when they mention things like 'gearing', or the EPS, or the liquidity of a company? Or whether companies aren't actually just fiddling numbers when they say their profits are up 10% on last year?
Ever wanted a tool to help predict how well a company will perform? Will it survive? Will it fold?
These spreadsheets and explanatory documents should help you to calculate all the jargon ratios and figures for yourself, armed with a set of the company's annual report and accounts, and should help you to understand what they actually represent.
It is truly amazing what you can tell about a company, if you really know how to read a company report, and well worth the effort, if the company happens to be important to you, in some way. Devine how they should alter their business practice to improve, or discover what will prove to be their Achilles heel.
Some of the material below may not be fully up to date with current accounting standards, but should, even so, be useful.