Financial data

Financial data is numerical information about money. It includes profit and loss figures, share price data and sales data, and helps a business judge how it is performing.

Profit and loss: who can see it?

A limited company must file details with Companies House, so its profit and loss figures are publicly available. Anyone can look them up, which helps investors and suppliers check the company's performance. A sole trader instead declares financial details to HMRC for tax, so their accounts are not made public. For example, Brightline Kitchens Ltd must file accounts, while a self-employed joiner running Oak & Plane reports income and expenses to HMRC privately.

Share prices and sales data

For a business with traded shares, share price data can reflect investor confidence. A rising share price can suggest investors expect good performance. A falling share price can make it harder for the business to raise finance and can damage its reputation.

Sales data can include sales growth, revenue (also called sales value), volume and market share. Revenue is the money a business receives from its sales, while volume is the number of items sold. If a bubble tea shop sells 4,000 drinks at £3 each, revenue is £12,000. If it sells 4,400 drinks next month, sales volume has grown by 10%, which is sales growth.

Different stakeholders, different reasons

Stakeholders may want sales data for different reasons. Owners use it to judge whether a product is selling well. Suppliers check it when deciding whether to offer credit. Customers may use it to judge whether a popular product will stay available. Competitors compare it with their own figures to see how their sales and market share are changing.