Hi and welcome back.
We've already covered quite a bit of what should go into a company profile presentation like the business
description geographical presence key operating indicators corporate structure and top management.
And now it's time to zoom in to the key financials.
Now we're talking numbers and this is one of the most informative parts of the profile.
The main purpose of a business is to make money.
The headline number is our audience should know revolve around levels and growth of sales and profitability
capitalization and debt.
These are best presented in a table.
Usually they should include the following lines.
For the last two to three actual years and possibility for any forecasted years if available revenues
revenue growth rate year on year Ebbitt the earnings before interest taxes depreciation and amortization
i.e. gross operating profit Ebbitt margin Ebbitt earnings before interest and taxes by e net operating
profit Ebbitt margin percent net profit net profit margin percent market capitalization.
If the company is listed net debt enterprise value net debt divided by Ebbitt enterprise value divided
by added price slash earnings acts as a key valuation multiple If the company is listed.
All these figures are subject to availability of information.
Financials should ideally be sourced from the company financial reports and accounts.
If these are not available secondary sources like business information provider's company press releases
or news articles can be used.
A quick glimpse of financials is always important and helpful.
However at this point senior executives could be even more interested in the company and would want
to have an idea about the firm's revenue breakdown by business line or geography.
This gives more specific information about the company's sources of revenues and how diversified they
are.
Diversification reduces risk.
The relative proportion of revenue streams from some premium or promising products are high growth markets
and the overall sales mix of a company can be especially interesting for some parties and B the main
reason for their interest in the company revenue split.
Information is best shown in a pie or a donut chart.
Our audience would want to know how the company they are being introduced to has been doing over the
past few years.
A company's share price performance graph if the company is listed can be useful as share prices should
reflect all information and market expectations about the company and the environment in which it operates.
Such graphs are shown over a relevant period which could be the last 12 months year to date.
Last two or three years and so on.
Such as share price graph would normally include a relevant benchmark index for the stock market where
the company is listed.
Or for the industry in which it operates.
It is a good practice to rebase the index to the company's share price at the beginning of the period
so the relative performance to the market or sector is visible.
The graph can also show the volumes of company stock traded will cover this in more detail later.
As share price charts can also be presented separately on a full slide.
If there are recent company developments and news that can have material impact on the business these
can be a useful information to put on our profile.
These may include any changes in top management like a new CEO coming on board any corporate events
like IPO initial public offering delisting mergers and acquisitions joint ventures greenfield projects
entry in new markets new partnerships and a major lawsuits or regulatory decisions affecting the company
and the new patents and so on.
As you can see a company profile could contain plenty of elements.
Are we going to include them all.
Probably not.
However what we can do is make a judgment call based on our audience their informational needs and the
message we are trying to convey.
This isn't an easy task.
The good thing is that you'll usually be much better at it once you perform this exercise several times.
Ok this will do for now.
Thanks for watching.