When analysts are looking at an annual financial report, there are several key indices that they typically examine. These indices include:
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Revenue: The amount of money earned by the company through its operations.
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Net income: The amount of profit the company has made after deducting all expenses and taxes.
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Earnings per share (EPS): The portion of the company's profit allocated to each outstanding share of stock.
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Return on equity (ROE): The amount of net income generated by the company as a percentage of shareholders' equity.
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Debt-to-equity ratio: The company's total liabilities divided by shareholders' equity.
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Gross margin: The percentage of revenue that remains after deducting the cost of goods sold.
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Operating margin: The percentage of revenue that remains after deducting all operating expenses.
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Inventory turnover ratio: The number of times a company's inventory is sold and replaced in a given period.
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Accounts receivable turnover ratio: The number of times a company's accounts receivable are collected in a given period.
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Current ratio: The company's current assets divided by its current liabilities.
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Price-to-earnings ratio (P/E ratio): The market price of a company's stock divided by its earnings per share.
Overall, these indices can provide valuable insights into a company's financial health and performance, and are important factors for analysts to consider when evaluating an annual financial report.
