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Financial Statements
Student’s Name
Institution’s Name
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Date
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The five points I would use within the report are market cap, revenue data, free cash flow,
stock price performance, and profitability. These indicators in the annual report and financial
data are important for measuring a company's performance and well-being. Market Cap is
important since it shows a company's stock market worth (Stock Analysis, 2023). This indicator
is crucial to understanding the company's market position. Another important data element is the
stock price performance, measured by daily percentage changes. If there are positive trends in
stock prices, it signifies that the investor is optimistic about the company's prospects. These
movements will offer information on the company's market perceptions and investor views.
The third data source I will use is the annual revenue data. Positive revenue growth
indicates sales growth and market expansion. This metric will help evaluate the company's
ability to generate income and sustain its operations (Mardhiyani et al.,2023). The fourth
parameter will be profitability data. This indicator is crucial for assessing the company's
profitability and viability. Net Income quantifies profitability, which shows the company's
growth. If the profitability is high, it is an indicator that it has good expense control and value
development. Lastly, a company's financial health and operational effectiveness can be
determined by Free Cash Flow (FCF) (Zhou et al., 2022). FCF is generally estimated using
Operating Cash Flow - Capital Expenditures. Free Cash Flow shows a company's cash after
operating and capital spending. Positive FCF indicates the company can invest in expansion, pay
down debt, or return value to shareholders.
3
References
Stock Analysis. (2023). Small-Cap Stocks.
https://stockanalysis.com/list/small-cap-stocks/
Mardhiyani, S., Nurastuti, P., & Rakhmat, A. (2023). The Influence of Free Cash Flow, Financial
Distress, and Investment Opportunity Sets on Profit Management (Studies in
Transportation Companies Registered at Indonesia Stock Exchange Period 2019-
2022).
Jurnal Penelitian Ekonomi dan Akuntansi (JPENSI)
,
8
(2).
Zhou, G., Liu, L., & Luo, S. (2022). Sustainable development, ESG performance, and company
market value: Mediating effect of financial performance.
Business Strategy and the
Environment
,
31
(7), 3371-3387.
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