What is a financial result?
Financial results report on a company’s bottom line and are a key performance indicator. The term refers to the amount of profit or loss a company makes during a set period of time.
Key takeaways
-
Financial results are key performance indicators showing a company's profit or loss over a set period, providing shareholders insights into overall financial health.
-
Companies report financial results quarterly, half-yearly, and annually, with stock exchange-listed companies required to publish earnings frequently while others aren't obligated to.
-
Financial results enable comparison between companies in similar industries, demonstrate sector growth, and help analysts assess investment risk and identify market trends.
Where have you heard about financial results?
First-quarter, half-year and end-of-year financial results showing a company’s performance are regularly published in the news. However, their purpose is to give shareholders a general measure of a firm's overall financial health; reporting earnings before interest and taxes.
What you need to know about financial results.
Financial results are relied upon when comparing the success of similar company’s within an industry or to demonstrate the growth of a particular sector. They can also be used as a guide when analysing trends and assessing investment risk.
While not all companies have to make their financial results public, companies listed on stock exchanges are required to publish their earnings on a frequent basis.