Analyzing Annual Reports of Two Canadian Banks to Determine Career and Essay

Analyzing Annual Reports of Two Canadian Banks to Determine Career and Investment Opportunities - Essay Example Basically, the companies are managed by directors on behalf of the shareholders and therefore have to be accountable to them. The annual report is a tool of communication by the directors and senior management to their shareholders explaining their business strategy of the previous year and explains their performance and also provides their vision for the company for the long term. It gives the shareholders the basis to critique and evaluate the effectiveness of their directors and also give input on what they expect from them. The annual report would also help to promote the agenda of the stakeholders internal, connected or external in a manner that would result in a win - win scenario. The two banks were selected randomly because they are among the largest financial institutions in Canada and have a long history of above average performance. They are therefore expected to have proper business models and offer an excellent career opportunity. Objectives In this analysis of the annual reports of TD and CIBC the writer is attempting to compare the two banks as investments and career opportunities. To begin with when an evaluation of the suitability of a bank as an investment opportunity there basic criteria include the profitability growth, level of liquidity and the capital structure of the company. The valuation of the company’s share and the performance in the stock market is also an indicator of the confidence the market has on the company. If a company has good profit history, a stable dividend growth policy and well managed working capital to ensure there are no liquidity problems would be the most attractive as an investment.