Clues to Reports

Steps to find out more about your client's strategies and goals

Before you start researching company reports for details around financial performance, it’s imperative to know the company’s corporate and financial goals and strategic direction. This information provides a context and background for its performance. 

For instance, if you see a declining trend in profitability, and the company has stated that it’s exploring cost reduction initiatives, you may gain opportunities to explore with a client’s executives. You can find information on strategies and goals in:

· Annual Reports: in the opening pages before the actual financial review, the company will often detail its goals and strategies.

· Investor and/or Analyst Presentations: these are excellent sources of goals and strategies because investors are interested in the security and growth of their investment, and therefore in the company’s direction.

· Earnings Calls: listen to the CEO’s review and comments for clues to strategic direction.

· Regulatory Filings: while information is not as plentiful in regulatory reports, you may occasionally see goal and strategy information.