Quarterly financial report gives a chronological overview of the financial condition and the business process of any organization.
Usually, the quarterly financial report is been issued after every quarter of a financial year. It includes the income statement, net income, income per share, earnings from the on going operations, balance sheet, and total sales.
Interpretation & Evaluation of Quarterly Financial Report:
The major elements, like net income and EPS ,are taken against the previous year’s numbers. By taking and as well as explaining the comparisons, investors can make the curve of the financial health of any organization and also will get the idea that whether it’s safe to invest in that organization’s share or not.
The facts like launching of new business divisions, income tax credit for research and development, corporate cash flows, period specific promotions have an important influence on the quarterly report. That’s why companies have divided their reports, which is known as “Segmented Reporting”, into two parts.
Software Manufacturing: It includes marketing deployment and technical support for products.
Integration: It includes the business solution part.
Utility of Quarterly Financial Report:
Focuses on the unexamined financial reports: It highlights the unexamined financial reports and statements comprising the statement of income, cash flows, balance sheet etc.
Summarization of Financial Issues: It summarizes financial performances for revenues, transit operations, capital outlays and staff operating outlays for one quarter of a fiscal year but doesn’t give the pictorial figure of financial health for a complete year.
Quarterly Prediction: By this report the company can forecast their sales, expenditures and stock market values quarterly.
Last Updated on : 26th June 2013