Writing research reports is a creative process. Creativity is the sense of how an analyst structures the report and communicates the message. What he does is take in a lot of financial information and give out an understandable version of what that financial information means. The process of converting numbers to views does demand certain qualities.
Research analysts make a difference by how they present their views, conclusions, and recommendations. The communication aspect of an analyst's job is as important as analysis, of which writing a research report is one.
Writing a Good Research Report -
Just like writing projects, compiling research reports also has three important steps - Planning, Drafting, and Editing.
The Major Points of a Research Report includes:
The writing process has to be planned as to how each section will be approached and assign a deadline for each. As there are many reports to be written and the workload shall be high near the quarterly results season, it is important to maintain high levels of discipline otherwise the delay can affect the work. Once done with the planning, work should begin on each section.
Generally, each organization has a template of its own, and therefore working on a predefined structure makes the work a little bit easier. Almost all the sections of a research report are fact-based and therefore filling them is more of a copy-paste function but certain important sections require an understanding of the business and thorough communication with management.
Fact-based sections in the Research Report:
- Peer group analysis, shareholding patterns, company fundamentals, and key financial indicators.
- Source of information: Annual reports, quarterly reports, calculations.
The view-based section of the research report:
- Company Business, Key Strengths, Key Concerns, Industry Overview.
- Source of information: Communication with management, Personal Understanding of the business and industry.
- Once the draft is ready it should be rechecked for financial figures and other errors and edited accordingly.
- Every year many reports are prepared by analysts but only a few make a remarkable presence. Things which should be avoided while preparing a report:
- Unnecessary details that are of no use should not be mentioned in it.
- Avoid using long sentences for description, make them precise & simple
- Use simple language which everyone can understand.
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