1. Why Do Investors Care About Financial Indicators?
Investors want a clear understanding of where they put their money.
Financial indicators are key tools that show a company’s financial health, profitability, and growth potential. They help build trust and convince investors to invest.
2. Key Financial Indicators
2.1. Revenue
Total money earned from sales of goods or services during a specific period.
2.2. Net Profit
The amount left after all expenses (taxes, salaries, debts) are deducted from revenue.
2.3. Profitability Ratios
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Net Profit Margin: percentage of net profit relative to revenue
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Return on Equity (ROE): return percentage on shareholders’ equity
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Return on Assets (ROA): return percentage on total assets
2.4. Liquidity Ratios
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Current Ratio: ability to cover short-term liabilities with current assets
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Quick Ratio: ratio of the most liquid assets to liabilities
2.5. Debt and Capital Structure Ratios
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Debt to Equity Ratio
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Debt Coverage Ratio
3. How to Present Financial Indicators to Attract Investors
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Clear and understandable reports: use graphs and tables for simplicity
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Historical data: show trends over the last 3–5 years
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Link to company strategy: explain how indicators relate to business goals
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Analytical notes: provide explanations behind the numbers and future outlook
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Financial forecasts: present projections of future revenues and profits
4. Additional Important Aspects
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Transparency: always provide accurate and reliable information
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Risk assessment: show potential risks alongside financial data
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Return on investment: clearly demonstrate expected investor returns
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Innovation and growth opportunities: highlight new projects and growth plans
5. Conclusion
Attracting investors using financial indicators is the art of presenting a company’s financial health and prospects clearly, reliably, and convincingly.
Good financial analysis and presentation strengthen your image and increase financial support opportunities.