Financial reports reveal the financial state of a business and there are a bunch of standard reports for very specific parts of a business. The most common ones are the Profit and Loss Report and the Balance Sheet but they are more often referred to as Statement of Financial Position (Balance Sheet) and Statement of Profit or Loss .
If you’re a subscriber to this blog you’ll recall that I wrote about Xero’s 2023 financial report and how they announced a big loss yet their share price sky rocketed. There’s a lot involved in financial reporting and sometimes a business is more valuable if it is growing quickly than if it makes a loss, particularly if that loss is caused by one off items and helps contribute to future growth.
Continue reading Need to Learn How to Read Financial Reports?
