4M BG

Financial results can be presented in a bare way that many may fi nd
diffi cult to interpret usefully. Alternatively, they can be presented with
an engaging analysis that is supported by pictorial or graphical charts to
convey important information. In his book A Primer in Data Reduction
(Wiley, 1982), A.S.C. Ehrenberg describes several methods for communicating
data through tables and charts that make it easier to read, assimilate
and act upon. Some of his techniques include:
Rounding
Most people cannot manipulate long numbers in their heads, so to enable
readers to analyse the data presented it can be helpful to round each
number to two digits. This may seem a reduction in detail, but it will
probably be suffi cient to support the decision-making it is intended to
instigate.
For example, if the margins for two products were 18.86% and 38.12%,
it can be diffi cult to compare them easily. However, with just two digits
these become 19% and 38%, making it quicker to see that one number is
half the other.