Example of financial report to board of directors

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Clear financial reporting to the Board of Directors is essential for good financial management in any organization. The r atios are categorized into five different categories. These ratios are compared with the two years. This ratio measures how effectively the firm uses its assets to make profits. Gross profit margin, profit margin, return on capital employed and asset turnover ratio a re classified under this ratio. The gross profit margin shows an increasing pattern for the year 200 to 2008.

The ratios are 38.2%, 40.3% (increase by 2.1%) and 45.7% (increase by 5.4%) for the year 200, 2007 and 2008 respectiv ely. Any thoughts on more analysis, variance explanations, etc. The more numbers you put on the presentation the more likely they are to dismiss the information. That being said you should of course still have a table showing the main numbers.

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