Breaking either positive or negative news to investors should be professionally handled. There is a need to ensure that good investor relationship is upheld for the sake of facilitating increased trust and increased investment opportunities (Lepta, 2003). Increased annual profit is one major event which is extraordinary. Investors are pleased when the organization makes profits, considering their increased wealth and profit maximization goals are achieved. In order to disclose such relevant and positive information, there is a need to have a proof of what is being highlighted, which could be presented in terms of financial statements. Another event that’s extra ordinary is the acquisition of another company. Investors are keen to support expansion strategies. Acquisition of another organization is an extra ordinary event. The capital base is increased, and the profitability of the organization will increase too. This event is presented through financial records as well, and a presentation of the plans set to achieve massive success and organization prosperity in the industry over the years. The most important financial ratios that indicate the financial health of a company include the; current ratio and the gross profit. The gross profit shows the extent of profitability of the organization over the annual cost of sales, while the current ratio shows the relationship between current assets and the current liabilities in the organization (, 2004). Should the gross profit and the current ratio change from one year to another, there are two positive outcomes which might be realized in the organization; first, the asset worth might have increased which is a good indication, and the profit levels could have dramatically increased which is also a good indication for the organization. , B. (2003). Statistics for Evidence Based Practice and Evaluation. New York: John and , J. (2004). Understanding Financial Statements. London: learning.
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