Sid Cato -- Answers

(Answers for January 1998)

1. Sid Cato favors use of a grid—an operational breakdown that shows, among other things, how well a company did in each area during the year past and what the prospects are for each. Plus naming competitors and customers, specifically. This is the big new trend in annual reports. True or false?
Answer: True, sort of. Back among 1994 reports, one in six companies included a grid, worth at least three, four or five points. A year later that had improved to one in five. Among '96s, 23% went that route. But among early-arriving annuals for 1997, the figure is off to 15%. Roughly one in seven.

2. More companies are taking to heart your advocacy of using a theme. True or false?
Answer: True. While only 55% used a theme in their 1994 reports, last year's crop (for 1996) had a much improved 64%. Among early '97s, the figure stands, by coincidence, at—64%. Virtually two in three reports.

3. And themes are still being strongly supported. True or false?
Answer: False, at least among early arrivals. While last year, more than three of four report themes were strongly supported, that's off a bit among this year's crop to 72%.

4. Annuals, by your rating system, are light-years better than, say, five years ago. True or false?
Answer: If we're talking about the Cato Positive Index (CPI), which rates annuals in three dozen categories—from honesty to extensive financial disclosure—the answer is no. While last year's reports averaged a record-high 8.9% CPI, so far this year that figure stands at 1%. (However...that compares, year to year at the same time, thusly: 1% today vs. a minus 2.9% a year ago at the same stage of this process. Meaning: Companies on a fiscal-year basis tend to turn out a down-and-dirty product, by and large. Though not in every instance, of course.)

5. One area of improvement is inclusion of an action-oriented contents listing. True or false?
Answer: False. A year ago, 18% (roughly one in six) reports featured a "talking table of contents," up substantially (20%) from 15% in 1991. So far among early 1997s, though, only one in 15 includes that feature...found in every daily newspaper and weekly or monthly magazine.

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	1.	Sid Cato favors use of a grid—an operational breakdown that shows, among other things, how well a company did in each area during the year past and what the prospects are for each. Plus naming competitors and customers, specifically. This is the big new trend in annual reports. True or false? *Answer:* True, sort of. Back among 1994 reports, one in six companies included a grid, worth at least three, four or five points. A year later that had improved to one in five. Among '96s, 23% went that route. But among early-arriving annuals for 1997, the figure is off to 15%. Roughly one in seven.
	2.	More companies are taking to heart your advocacy of using a theme. True or false? *Answer:* True. While only 55% used a theme in their 1994 reports, last year's crop (for 1996) had a much improved 64%. Among early '97s, the figure stands, by coincidence, at—64%. Virtually two in three reports.
	3.	And themes are still being strongly supported. True or false? *Answer:* False, at least among early arrivals. While last year, more than three of four report themes were strongly supported, that's off a bit among this year's crop to 72%.
	4.	Annuals, by your rating system, are light-years better than, say, five years ago. True or false? *Answer:* If we're talking about the Cato Positive Index (CPI), which rates annuals in three dozen categories—from honesty to extensive financial disclosure—the answer is no. While last year's reports averaged a record-high 8.9% CPI, so far this year that figure stands at 1%. (However...that compares, year to year at the same time, thusly: 1% today vs. a minus 2.9% a year ago at the same stage of this process. Meaning: Companies on a fiscal-year basis tend to turn out a down-and-dirty product, by and large. Though not in every instance, of course.)
	5.	One area of improvement is inclusion of an action-oriented contents listing. True or false? *Answer:* False. A year ago, 18% (roughly one in six) reports featured a "talking table of contents," up substantially (20%) from 15% in 1991. So far among early 1997s, though, only one in 15 includes that feature...found in every daily newspaper and weekly or monthly magazine.

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