Shares & Derivatives
The first 2 questions to pop up after reading annual reports
By KT Wealth  •  December 22, 2014
1. How does the company make money? Easily, you can gather the nature of the business (what the company sells) through the company website. However, it’s not just about the products and services but how does the company actually make money? To illustrate an example, I will use Straco Corporation Limited (“Straco”), Annual Report FY2013. Straco is operates and manages tourist attractions. Please note that this is not a recommended stock pick. Seek your licensed financial consultant for advice. Any information below is used for educational purpose. Firstly, find out: “Where did the company sales originate from?” “Which segment contributes the most to the company’s sales?” To get the answers, dive into the income statement of the annual report. Look at the revenue portion. You will get the figures in 2012 ($55,198,435) and 2013 ($72,840,387). Write the figures down on a piece of paper. Notice that there is ......
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By KT Wealth
A Senior Professional with more than 10 years experiences in regional business development and equity investment. He is also a Certified Career Coach.
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