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Annual Reports – How to read it?
By Mr. IPO  •  April 10, 2013
I received 3 hard copies of annual reports recently. What insights can you gain from the annual reports?

Let's use a simple annual report on Riverstone as example. The link to the soft copy is here and can be found on the SGX website.

Company's Vision

It is important to know what the Company's vision is and whether the vision has changed from prior year. In this instance, the vision is as follows:


Profitability Trend



You can also see at one glance the profitability trend, financial ratios and the dividends declared. In this instance the revenue is growing nicely and the company has zero debt but the net profit is not growing as quickly, probably due to decline in margin.

Milestones

You can also read about the various milestone reached by the Company and in this instance, the Company commissioned 6 production lines in Dec 2012 and the production capacity ...
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By Mr. IPO
Mr. IPO graduated from NTU with a Bachelor in Accountancy (Honors) and started life as a lowly auditor. The audit experience not only polished up his accounting skills but also made him very skeptical about the financial records of companies. He always read the financial reports with a huge dose of salt ...
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