What do you look for in previous annual reports?

• 28 April 2017

• #1

R

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Hey guys obviously the most current annual report is the most accurate but my question is then what do you do do with all the previous ones say you read 10 years of annual reports but everything is out dated the executives pay, the financials them selves etc. So what am I looking for? Is it trend in earnings? Genuine accounting? Trend in debt levels? All the above? To build my knowledge?

 

• 29 April 2017

• #2

So_Cynical

The Contrarian Averager

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One this i look for is shares on issue, i dont like company's that dilute share holders willy nilly, not without creating value anyway.

 

• 29 April 2017

• #3

Triathlete

Keep it Simple..!

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Return on assets (ROA) with a positive trend.
Return on equity (ROE) with a positive trend.
Earnings per share growth (EPSG).
Revenue Growth....must be positive over the year.
Forecast over next 1-2 years.....

 

• 29 April 2017

• #4

galumay

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I wouldnt read back through 10 years of previous ARs for a business I was looking at investing in. I would read the latest AR and all of the data that interests me I would enter into my spreadsheet. For a historical perspective on the business I would just source historical financial data that interests me from a service like commsec.

 

• 29 April 2017

• #5

R

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Ah ok thanks guys.