How would you like it if you had a well-researched database about a company before making a big decision? A report about the various aspects of the company, it’s inner workings, it’s financial structure would make a tremendous difference to the decision making process. A company research report does just that. A research report is a document formulated by the strategist or an analyst of a firm. The main objective of compiling a company research report is to create an accurate profile of a company.
This report is created by taking reference from authoritative sources to ensure that the information cited is up to date, comprehensive, and reliable. With a reliable firm, a company research report can be generated in a short time and is relatively cheap.
What does a company research report cover?
A company research report is a comprehensive database which includes
- Historical Finances- This includes the history of financials over a 5 year period. This data is presented in the form of time series charts, graphs, and ratio analysis. Financials help you to build a stability profile of a company and helps you assess whether it is suitable for further investment and collaboration.
- Shareholders and group structure- Well researched data about the shareholders, shareholding pattern aids in understanding the investment patterns of the company. The parent company of a firm or its subsidiaries is essential as well and is incorporated in the report as well.
- Directors and key persons- While taking major business decisions, it is important to know the people at key positions of the company. A company research report encompasses information about the directors, management, and important personnel.
- Mortgages and charges- This includes the charges on the assets of a company and its lenders. This presents an accurate picture of the company’s status and current standing.
- Ratio analysis- Ratio analysis helps you to understand the performance of a company over time. It helps you to understand the general working of a company and gives you an idea about the growth of a company.
Steps to compile a company research report
A comprehensive research report can be made in these steps.
- Identify the company- Find out what the company is and what its core competencies are.
- Profiling the Company- The next step is making a short profile of the company that summarises what the company does. This includes company overview, company history, sales, profits, location, products, and services, etc.
- Current news and in-depth research– Articles published in leading magazines and news sources should be referenced and used as a metric while researching a company.
- Visit the company’s website- A company website offers a plethora of information about its workings and is a valuable tool.
- Examining the company’s financials and Market performance- It is a practice for public companies to issue annual and quarterly report cards that include crucial information about income statements, balance sheets, and cash flow statements. These reveal their financial soundness and reliability.
- Know the company’s strategy- A company’s strategy can usually be found in the company’s annual reports filed with the Securities and Exchange Commission. This report contains a detailed analysis of the company’s strategy, operating, marketing, international supplies, and more.
- Find out about Investment research reports- Major companies have analysts in place that curate and send out detailed investment reports. These investment reports can be found through various online sources.
- Learning to Analyze- After the collection of information, it is important to be able to analyze it. Various tools and professionals are available which do this. Only after proper analysis and research will you be able to get a succinct and clear picture.
- Compilation of data– This is the last step of the process, which requires the data to be put into a clear and concise manner. This step concludes your report making process and leaves you with a detailed, well researched, and precise database.
A company research report is an important business tool. It helps you to stay ahead of the curve while making important business decisions. You can compile a research report yourself by following the guidelines mentioned above. While this gathering of information may not be an easy process and may require lots of human resources, they reap rewards that are ultimately beneficial.