How to Read Annual Report of any Company [+Worksheet] | Learn & Understand Annual Report Analysis
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- Опубликовано: 31 июл 2024
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The annual report helps existing and potential investors understand the financial state of a company. The annual report includes a wealth of information such as an overview of the business, industry dynamics, key performance indicators, business risks, financial information etc. However a company's annual report is also quite bulky often going into hundreds of pages. So in this video, I shall help you understand how to read the annual report of any company and make sense of it. The focus here will be filter-out the most relevant information that can quickly and effectively paint the right picture of the company
👉 The worksheet I use for analysing annual reports and for organizing the information is available on this link (the worksheet is downloadable) : docs.google.com/spreadsheets/...
👉 Video Chapters:
00:00 What is an Annual Report?
01:40 1. Corporate Information
03:55 2. Management Communication
07:45 3. Statutory Reports
13:18 4. Financial Statements
16:10 How to Analyse an Annual Report?
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#annualreport #financialstatements #analysisoffinancialstatements
Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
This video is a document of significant importance. Very well done!
Thank you very much
Awesome video...thanks for bringing such valuable content everytime!
My pleasure!
This video makes me aware of how hard it is to read annual reports of a company compared to getting a benifit on a very low investment amount i want to invest.
I have to appreciate for all the effort you have made for providing this content. Thank you very much
Most welcome Hemanth ji. Glad you found it useful
Very crisp and informative. Thanks
You are most welcome!
Thank you for explaining the details and also on how to do. Feel much more confident and will try to read and understand going forward .
Most welcome. Yes, please give it a shot .. the first 3-4 times might be a bit hard but once one gets used to it, it becomes a lot easier & enjoyable
Thanks for rekindling my desire and also changing my approach toward reading the company's annual report. 👍 Thanks, Shankar!
My pleasure! Glad you found it informative and actionable
Excellent learning. Thank you so much for enlighten me.
My pleasure, Imran. Glad you found it useful
The video every investor should see 👍
Glad you liked it
Well said
Thank you sir .Waited for this video from long time
Most welcome
This is exactly what i was looking for, thank you so much for the great knowledge that you have share din this video!! I will try to apply this knowledge in coming yearly report.
You are so welcome! Best of luck with your forthcoming review
Very well explained. Thanks for sharing.
Glad you liked it
Very informative. Thank you for the video.
Most welcome. Glad it was helpful!
Thank you for such a wonderful video
You are so welcome!
This video was a fantastic watch. Really loved your way of explaining things. Thank you gurudev!!
My pleasure. Glad you liked it and found it useful
Thanks a lot Shankar Sir for sharing ur knowledge....very informative...it's always a pleasure to watch ur videos.... there is so much to learn. Thank you
Thank you. Glad my work is helping you in your financial journey
Thank you so much for the clarity you provided and thanks for sharing the sheet....
My pleasure. Look forward to seeing you make the most of it
One of the best videos on ur channel...keep make more such videos on the processes, research aspect and technicalities of investing....keep it up!!
Thank you 🙌
wow, you first bifurcated the report and then explained all of those and drew out the plan on how you can use it practical manner, thannks
Most welcome, I've glad you liked it
Great content, worth the wait...
Thanks
Love your page sir, thank you so much.
You are very welcome
Excellent one sir. As u said it takes much time to check especially the qualitative aspects ( researching about KMP Etc .) Hopefully i could learn to complete this analysis in 200 min atleast in future
Thank you. Generally, I try to answer the key questions (the ones in the worksheet) and if that's to my liking, I dive deeper into the quality of management, prior corporate governance allegations, family control etc. So layer 1 then layer 2. Everyone has their own way ofcourse, and after reading 5-6 annual reports it becomes clear to each person how they want to structure their reading.
Thank you sir!!! you are the best!!! All Loves from Indonesia
You're most welcome!
Too good.. Exceptional sir...
Thank you!
So insightful video Shankar! Being CFA candidate myself i find this video very thoughtfully put up.
Thank you very much
Very informative video Mr.Shankar, thank you for the efforts. Really appreciate
My pleasure! I'm glad you liked it 🙌
As usual awesome
Thank you!
This is some crazy Information Shankar Nath. I am also planning a make a video on How to Read the Annual Report of any Company.
Will take some tips from this Great Video as a reference 😂😂
Will Look forward for your Video
Thanks Ganesh, look forward to watching your video soon
Thanks for this wonderful video sir
Most welcome, glad you liked it Akhil
Hi Shankar. A really good video. As a teen myself, I am constantly overwhelmed by the pages and I don’t understand what to read. Thankfully I have some courses that teach me this stuff, your video helped me conceptualise this well. Great content, would say the best video on the channel so far.
Thank you Shreyas. Do the hard stuff .. everything else will look really easy
@@shankarnath
Definitely agree
Informative
great learnings thanks for sharing
Thank you very much. Glad you liked it.
Neatly done 👌👏👏
Thanks a lot 😊
Very useful information sir thanks for sharing.
Most welcome, glad you found it useful
Really great 👍👍
Thanks a lot
Shankar sir is one of the best teacher. All videos are valuable.
Keep educating us sir.
Last request to make a video on reading financial statements. It would be easier novice investor like me to learn it from You sir.
Thank you very much for your kind words and suggestion
This video will definitely reduce my fear about reading annual reports.. thank you.
Glad it was helpful!
Wow... Lot of my daily learning hours going to be in your channel.
Glad to hear that!
@@shankarnath I wish u to be my Benjamin Graham
As a beginner, I m studying only profit and loss statements, but after this video now I m more focused on company reports. Thank you for helping us with our investor journey. 😎
All the best, Jitu. Happy to play a small part in your investing journey
@@shankarnath I send you request for access excel sheet
The sheet is downloadable. Please simply download it.
@@shankarnath got it thank you
Very useful information
Glad you liked it
Thanks for this excellent analysis of how to read a financial statement, it is concise and gives one a great basis to do a thorough job in a specified time.
Till now, I mainly concentrated on the MD&A and financials, the contingent liabilities sections in the Notes to accounts as well as the flags thrown up by the auditors.
Your explanation is just great, and I would request you to guide me to some videos showing the mechanics of analyzing the financials. Kindly help if possible.
Regards,
Mohit Singha.
Most welcome and thank you for the kind words, Mohit ji. And thanks for your topic suggestion.
Amazing Video Sir!!!!!
Glad you liked it!
Informative video!
Really important analysis while selecting any stock. Once upon a time I downloaded few and ended up losing interest later.
There is a need of a website/app where we can find a summary of annual financial statements. Provide some forensic investigation. There are many websites which covers quantitative analysis but misses out on qualitative.
Glad you liked it!
Excellent video
Thank you!
much needed video sir...please make a whole series about annual reports cash flow statements and other tools for fundamental analysis
addition of excel sheet was also very helpful sir.. please keep educating us more❤
Thanks for your suggestion!
Highly recommended sir
Best information and direction vs all click bait videos
worth saving and watching each year before reviewing annual reports
Happy you found it useful, Vaibhav
Excellent Sir
Thanks 🙌
Now this is good
🙌
This one is an excellent video, can you make one video on forensic audits?
I'll try. Thank you for the suggestion & for your kind appreciation
Though I am an investor in Stock Market for last 25 years with good gain ,but if I get to know your guidance for last 20 years , I may retire now with a smiling face
Hello Nilanjan ji - I am confident of one prediction which in my head gives me a lot of peace & smiles i.e. the Indian market will grow by 12.2% every year. And that number is my golden number because it means whatever I invest in equities today will be 10 times in the next 20 years. Afterall 1.122^20 = 10
I explained this in my thumbrule video (ruclips.net/video/rfScEFtcx3s/видео.html). Hope you have watched it esp. from 6min 46secs onwards
Wishing you and us all the very best for the future.
Nice video...
Thanks!
got to know your way of researching the annual results😀
🙌
Thanks
Thank you very much, Hari. Glad to know you liked this piece of content. I'll be happier if you analyse a company/sector in the future & I can use it in one of my videos as a collaboration. If that appeals to you, then do email me your ideas.
Was easy for me to understand, thank you. Now I have a lot of work to do.
Most welcome, Harsh. Glad it helped!
❤
Good one, kindly help with different business like Bank's AR,QSR AR etc.
Thanks. I take up an industry every 3 weeks. Here's a playlist that you might find useful: ruclips.net/video/V28LpTApAww/видео.html
thank you again for a great video
15:50 i wanted to know what is meant by the "net worth" of a company?
in accounting terms and intuitively
Most welcome. Think of net worth like you as an individual. So you would generally calculate all your assets and subtract your loans. For a company, it is pretty similar. Per formula, you can either use:
1. Total assets minus Total liabilities .. or,
2. Shareholders Equity minus Reserves & Surplus
You can find more details on the Internet
@@shankarnath thank you
Can you make a video that has all the tools we can use to do the fundamental analysis make be kind of software that i can use to get the fundamental analysis to a summary point (ex-resomer can be used to make the summary of the annual report) same way to find the company details about the history , frauds, education & all kinds of informations to be found . You can also include all the tools that to be used.(i believe making something simpler is very important ) declutter ring is very important for any kind of research
Thanks for the suggestion. I'll add it to my content queue!
Sir I am 19 years old from Bihar. Which books or articles or newsletters would you recommend me to learn about investing. I love the idea of money working for me to earn more money for me, and how investors help businesses to grow and those businesses help to increase employment for more people and ultimately help a nation to develop financially. I am interested in investing and business side of money.
Hi Rohan, I have covered this in my video on 10 Commandments of Investing. That video's description has some essential reading material in it
@@shankarnath thank you very much sir.
good
Thanks
Hi Shankar, can you please include investing in unlisted companies via platforms like leadoff in your topics and platforms for like Tyke for investing in Startups
Hi Vivek .. it's a good idea. I'll add it to my content queue and work on it over the next 1-2 months. This is something I wanted to do aswell.
Hello Sir,Can you please also do a video on how to prform technical and fundamental analysis of a company
Hello Mudit, I'll add it to my content queue. Thx for the suggestion
Sir plz tell about index fund..
Specifically MSCI, NASDAQ, MIDCAP, SMALLCAP and NIFTY 500 index fund..
Pls compare their returns, volatility and risk in 10-20 year time horizon with respect to Sensex 30 or nifty 50 index fund..
It's a sincere request sir, pls do it, I do blindly trust your effort and experiment..
Thank you for your suggestion. I will add it to my content queue
Sir you have explained how to read the annual report but the real problem how to pick a stock out of 5000 stocks .how to filter out which one is good to be analyzed .how can i make some kind of criteria before filtering out.can you make a video about this ?
thank you
Hello, many such criteria have been discussed earlier. Kindly refer to my video on a) Peter Lynch, b) Magic Formula stocks, c) Coffee Can investing and d) the sector analysis videos involving Cement, Life Insurance & Hotels.
@@shankarnath but we would like to know your way of doing it ☺️
I don't reinvent the wheel and prefer using parts of what these techniques teach.
@@shankarnath got it sir.
Thank you
Hi Sir, don’t you think in today’s time investor presentations are more relevant as they are available quarterly and generally when an annual report comes out the company has already completed their first quarter of the next financial year, so I believe its a lagging indicator
In my view both documents are important. Ofcourse an investor should know the differences between the two. The benefit of a quarterly report is that it has more recent information while that of an annual report is it's detailing. Investors should also recognize the 3 advantages of the annual report over quarterly statements:
a) as I said, there is more information
b) quarterly statements are more like marketing materials as compared to annual reports
c) financial statements presented in annual reports are audited while that might not be the case with investor presentations
I think it's not a matter of choice i.e. go for X or Y. Both have their place.
@@shankarnath Thank you for taking the time to respond to my comment. You are doing a great job sir. It would be immensely helpful if you continue doing sector wise analysis like the one you did for cement.
Bible to analyzing annual reports
Glad you liked it.
first comment
🙌
Anna nenga tamil ahh?
Yes. I can understand & speak basic Tamil
Sir can you make a video on lum sum investment.
Hi. What are the points you want to understand in that video? A little context would help
@@shankarnath thanks for replying. Points like
1. Which is better lum sum or increase in amount in current SIP.
2. Lum sum in mutual fund or lum sum in nifty ETF.
3. Should I invest in a dip(5%) or wait for a major correction like more then 15%.
4. How much of lum sum amount should one invest at a time.
5. Is it a good idea to lum sum in mutual fund or one need to have good stock skills for lum sum in equity.
I'm new (less than one year ) in equity investment. so, sorry don't have much to comment.
I have been studying annual reports for over 50 years. Your introduction should have made clear which countries you based your talk...different countries have different requirements. David mccabe dublin ireland chartered accountant
Hindi me banaya sir please
Sir ab to hindi m video bnao please
Excellent sir
Thank you