The end of the financial year has passed by once again and I trust you have achieved your financial objectives. Some of you may not know yet; as you are waiting to hear from your accountant or your accountant is waiting to hear from you!
The same situation exists for ASX listed companies. While most companies have completed their financial year, the figures still need to be collated and sent off to the auditor for review. Once this is completed the company will release their annual report which tells their shareholders how the company has performed during the last financial year. This is where The Bourse Research tool becomes very useful.
To access the company information, open The Bourse software, click on the Bourse Links menu, and select Bourse Research. From here you can type in the code of the company you are interested in viewing. From the drop down menu you can choose the type of company information you want to view. A summary of the company’s business operations is available, along with the company’s balance sheet, profit and loss, cashflow, ratios and even the analyst’s forecasts.
The interim reports are the half yearly reports released after the financial results to December have been calculated, so at this time of year it is the annual reports we are interested in. Most companies have a June 30 balance date, though there are a few unusual ones out there.
Here we are looking at Forge Group (FGE) and data for this company is not yet available for the 2011 financial year. Once the company releases its annual report the data will be updated automatically. When we take a look at a particular company we can see all of the historical data for that company. Because The Bourse displays data over multiple years it becomes easy to see trends in the fundamental data over time. FGE has showed a steady increase in profit over the last four years, from just $2.67 million to $29.45 million. This has largely been due to strong revenue growth during the same period. We will soon know if FGE has been able to sustain this strong growth in 2011.
In addition to the profit and loss we can view the balance sheet and cash flow statements as well as the ratio analysis. The ratio analysis includes a wide range of ratios calculated from the data in the annual reports. Information such as PE ratio, gearing, profit margins, return on equity and many more are available.
Once again trends in the data can clearly be seen, such as an increase in profit margin from just 3% up to 12%. We will know soon whether this trend has continued.
With company reporting season in Australia due to start soon keep a close eye on The Bourse Research tool where you can follow the fundamentals and trends in your favourite companies.
By Jeff Cartridge
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