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What makes a good annual report?

Did the last annual report you looked at have a discernible point of view and a clear theme? Did it have honesty throughout with bad news delivered without subterfuge or delay? Did the CEO provide substantive insight into where the company is headed? Was it written in a clear and simple language? If so, it has passed some of the first tests that Sid Cato asks of a quality annual report. He has analyzed thousands of annual reports over the past 16 years. Companies pay him a lot of money for him to pull apart their reports. You can read many of his evaluation standards on this site and see lists of the best and worst annual reports. Some of the best are AFLAC, Armco, Ford, Bruncor and Southern. And don't think that it is only small companies that come in for criticism. The survey lists Reebok and Fruit of the Loom as among the worst for 1998. Smart investing means reading annual reports, and this site will help you get an idea of what to look for.

Sat, 04 Dec 1999 16:11:16 -0800