You really need to look at the turnover (of these two items), ... How fast is the company turning over receivables and inventories into cash compared to its competitors in the industry?

You have to think of it as a long-term proposition. You need to take it in bits and pieces at a time. Don't try and absorb it all at once.

As long as you understand that this is a heavy PR job, it can be informative. You can get a good idea of what the company is doing.

The financial highlights offered at the beginning of the report tend to focus on what they (the company) want you to see -- but that's just an appetizer, ... The second course -- the big plate of meat and potatoes -- is the financial statement.

In an annual report, you'll have a great deal of information that is of value, some that has some sort of value, and some that is worthless.