How could I find the increased revenue of a company due to its effort in research and development. I look at a company's financial statements, but its consolidated and doesn't give me the info i want. Please help.
To find the increased revenue specifically due to a company's effort in research and development (R&D), you might need some additional information beyond the consolidated financial statements. Here's a step-by-step approach you can take:
1. Review the consolidated financial statements: Start by carefully examining the company's income statement, which provides a summary of its revenue and expenses. Look for any mention of R&D expenses in the expenses section.
2. Analyze the footnotes: Often, detailed information about R&D investments and expenses is disclosed in the footnotes to the financial statements. Typically, these footnotes will provide insights into the nature and magnitude of R&D activities undertaken by the company.
3. Seek supplementary reports: Some companies provide supplementary reports or management discussion and analysis that offer additional details on R&D-related revenue. These reports may discuss new products or innovations that have contributed to increased revenue.
4. Explore annual reports: Annual reports usually contain a section highlighting the company's R&D initiatives and their impact on revenue. Look for references to R&D achievements and their corresponding financial outcomes.
5. Research investor presentations: Many companies create investor presentations that outline their R&D strategies and highlight the impact of R&D efforts on revenue growth. These presentations often provide a more comprehensive view of the link between R&D and revenue.
6. Consider analyst reports: Research reports or analyses from financial institutions or independent analysts might offer further insights on the relationship between R&D and revenue for a specific company.
7. Industry comparisons: If available, compare the company's R&D spending and revenue growth to other similar companies within the industry. This can help you understand the broader trends and evaluate the relative performance of the company.
By following these steps, you should be able to gather more information about the increased revenue resulting from a company's R&D efforts. Remember, it's important to look beyond the consolidated financial statements and explore supplementary sources that provide specific R&D-related details.