Financial reports are formal records that provide an overview of a company’s financial performance and position. They are essential for stakeholders, including management, investors, creditors, and regulators, to assess financial health. These reports typically include key financial statements such as the income statement, balance sheet, and cash flow statement.
The income statement summarizes revenues, expenses, and profits over a specific period, reflecting the company’s operational efficiency. The balance sheet presents a snapshot of a company’s assets, liabilities, and equity at a given moment, indicating its financial stability and capital structure. The cash flow statement details cash inflows and outflows from operating, investing, and financing activities, illustrating how well a company manages its cash position.
Financial reports are usually prepared in accordance with accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency, comparability, and transparency across entities. These reports are vital tools for decision-making, enabling stakeholders to evaluate past performance, understand current financial conditions, and make informed predictions about future performance.
### BRAIN Biotech's Latest Performance Shakes Investor Confidence BRAIN Biotech AG (ETR:BNN) unveiled its annual report, revealing disappointing financial results. The company reported revenues of **€55 million**, falling short of…