Presenting financial results to senior management can be stressful, even for the most prepared professionals. After all, unexpected questions and the lack of time to address all the data can compromise the clarity of the information.
But with a well-defined strategy, you can turn this meeting into a productive and efficient opportunity. The main focus is to understand what really matters to the company's shareholders or owners: the profitability of the business.
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In this article, you will learn how to structure a financial uganda whatsapp data results presentation in a clear and objective way, using two key indicators: ROE and cash flow.
Here you will find:
What do directors want to know?
How to make a strategic presentation
How visualizing data can help with presentation
Plan ahead and be objective
Improve your financial presentation skills
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What do directors want to know?
The goal of most shareholders is simple: to maximize the return on their investment. So when presenting financial results to the board, focus on information that demonstrates that return.
1. ROE (Return on Equity)
ROE measures the return generated by shareholders in relation to equity. To calculate it, divide the net income by the company's equity. The goal is to demonstrate how much the shareholders' investments are being profitable.
Formula : ROE = (Net Income / Equity)
Example : If an entrepreneur invested R$20,000 and obtained a net profit of R$3,000, the ROE will be 15%. In other words, for every real invested, there is a return of 15%.
2. Profit vs. Cash Flow
The next step is to check whether the profit generated is being converted into cash. To do this, it is common to use EBITDA (earnings before interest, taxes, depreciation and amortization), which serves as an indicator of the potential for generating cash flow.
EBITDA must be converted to FCO (Operating Cash Flow) to provide clarity on the real availability of cash generated by operating profit.
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How to make a strategic presentation
Presentation of financial results
We know that time in a board meeting is limited. Therefore, the secret is to be strategic in your presentation, addressing the main financial indicators clearly and directly:
Start with ROE to demonstrate the return on shareholders' capital.
Then show whether profit is converting to cash by explaining the conversion of EBITDA to FCO.
These two points are enough to keep the board’s attention and provide the most relevant information for decision-making. However, be prepared to answer detailed questions and present additional metrics if requested.
Read also: Presentation Techniques: Tips for Creating Impactful Slides
How visualizing data can help with presentation
Impactful visual presentations are essential to making financial data more accessible and understandable for management. Here are some tips for using data visualizations effectively:
Bar charts to compare performance over different periods.
Pie charts to show the distribution of profits or cash flows.
Simple tables to detail critical numbers without overwhelming the audience.
Plan ahead and be objective
Even if your most recent analysis is extensive, focus on what really matters: profitability and cash flow. Keep in mind that what often seems like a last-minute detail can be the most valuable information for the board.