Segment reporting
Also called: operating segments, segment information
The breakdown in the notes of revenue, profit and assets by each separately managed part of a company's business.
Segment information shows which businesses earn the profit and which use the capital. Growth in total revenue can hide very different trends between segments.
Example
A company with ₹900 crore of revenue and ₹150 crore of profit in pumps, and ₹300 crore of revenue but ₹20 crore of profit in motors, earns most of its profit from pumps.
Learn more in these lessons
- Notes to the financial statementsWhat do the notes to the accounts tell you?
- Management discussion and analysisHow should you read management discussion and analysis?
- Understanding a company's business modelHow do you work out how a company actually makes money?
- Products, customers and revenue driversWhat is really driving a company's revenue growth?
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