Financial highlights definition
/What are Financial Highlights?
Financial highlights summarize the key monetary results of an organization. These highlights are usually set forth in a separate section of the financial report of a publicly-held company to its shareholders . The types of information that may be found in a financial highlights section include:
-
Acquisition summaries. This states the nature of the acquisition, the revenues of the acquired entity, and whether the acquisition increased or decreased earnings per share.
-
Dividends . This states the amount of dividends paid, and whether there were any changes from the prior reporting periods.
-
Earnings per share . This addresses any significant changes in the earnings per share from prior reporting periods.
-
Liquidity statistics. This covers a standard set of liquidity ratios, noting the reasons for any significant changes.
-
Net cash flows . This covers the net amount of cash flows generated, and describes the reasons for any significant changes from prior periods.
-
New product performance. This covers the revenues and market share gained from new product introductions.
-
Performance statistics. This covers a standard set of metrics that management believes are representative of the overall performance of the business.
-
Profitability . This covers the percentage profit derived from each business segment, with commentary on any major changes.
-
Revenues . This covers the sales generated by each business segment, with comments about any significant changes.
The summary is commonly presented in a multi-year comparison format and may include percentage change information.