Reading results: growth, profit and cash flow
Revenue growth alone does not establish improving finances. Check what becomes profit and what turns into cash.
Bifinances educational guide · Updated 29 October 2026
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Start with period, currency and scope: consolidated or standalone accounts, half-year or full year. An acquisition or currency movement can affect reported growth. Check restatements and differences between announcements and audited accounts.
Calculate the margin
Illustration, in millions: revenue rises from 100 to 120 while net profit falls from 10 to 8. Revenue grows by 20%, but the net margin falls from 10% to about 6.7%. Examine costs, one-off items and financing expenses for an explanation.
Reconcile earnings with cash
A booked sale may not yet have been collected. Examine receivables, inventories, operating cash flow, investment and debt maturities. Banks need a different lens: credit quality, risk costs, funding and capital rather than a simple revenue comparison with an industrial company.
Educational information, not a personalised recommendation. Numerical examples are fictional. Fees, taxes and rules depend on the country and product; confirm the applicable terms before committing money.
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