11 tips for crafting smart, engaging stories on corporate financial performance

Corporate news coverage long was a black hole of financial journalism. It was dominated by boring stories weighed down by too many unexplained numbers and useless statements from company officials.

To boil it down to the essence of journalism story structure, reporters were providing too much of the "what" and not enough "why." Not enough "what next." Not enough behind-the-scenes company narrative and behind-closed-doors corporate intrigue.

In today's world of instant information, our audiences are likely to be aware of the latest developments related to a company’s financial performance in real time. So our challenge is to craft a compelling story that not only informs stakeholders (from consumers to shareholders) but also engages a broader audience by providing clear insights into the financial standing and operational strategies of an organization. Mastering this skill can help journalists and journalism students enhance the quality of their reporting and broaden their professional toolkit.

Here are 10 essential tips that can help you create engaging business stories focusing on corporate financial performance. Each tip is accompanied by practical examples to inspire effective storytelling.

1. Understand the company's economic world

Before writing a story about a company’s financial performance, it is critical to understand the broader financial landscape in which the company operates. This includes knowing industry standards, competitive positioning and market trends, as well as its history and reputation.

For example, if a tech company reports an increase in revenue, understanding the trends in technology adoption and innovation can provide context. A journalist could cite data from a recent industry report to illustrate how the company's performance aligns with or diverges from its peers.

In some industries, revenue or sales may be a key point for analysis. In other, profits. In some cases, beating the expectations of financial analysts may be a key point for you to consider. It is vital that you understand this financial landscape before the release of the new data.

2. Use clear and simple language

Financial metrics can often be complex and filled with jargon that may confuse or alienate readers. It is vital to use clear and simple language to distill complex information into digestible narratives. Be particularly careful to avoid quotations from analysts or corporate officials that include jargon or acronyms. It is preferable to paraphrase and use plain English.

For instance, rather than stating that a company has a "marginal decline in EBITDA," a journalist might say, "The company’s earnings before interest, taxes, depreciation, and amortization decreased slightly last quarter." This straightforward language helps ensure that the information is accessible to a wider audience.

Even generally known acronyms like "YOY" (year over year) are best left out of stories. You can substitute simpler English: "over the past year" or "over the past 12 months."

3. Know what data is important

Before you can use simple and clear language to describe financial performance, you have to identify which performance indicators are important. That means mastering the revenue and profit statements filed by the companies. Different data is important to different companies at different times: net operating revenues, gross profit, net profit (or loss), operating income, net income, net income per share, interest expense, debt. Is it an increase or decline in any of these factors? Your job as a reporter is not only to be able to read a balance sheet but to understand what numbers to look for.

4. Highlight "Key Performance Indicators" (KPIs)

Focusing on Key Performance Indicators (KPIs) forms the backbone of any financial story. These indicators provide concrete numbers that readers can understand and analyze.

Journalists should identify the most relevant KPIs for the business in question. For instance, if a retail company boasts an increase in same-store sales, these metrics can be highlighted to show tangible growth. Note: It's your job to know which indicators are the key performance indicators on your beat.

By integrating KPIs into the narrative, the financial story gains credibility and analytical depth. Adding a quotation from a neutral observer and/or a company official responding to the performance data should underscore your analytical point.

5. Address challenges and risks

Good business news stories involve tension. What's at stake? How can the company maintain its success? How can it turn things around? How can it navigate government regulation? Or a new round of tariffs? Or foreign competition? There always is tension.

A balanced narrative includes not just successes but also challenges and risks facing the company. Acknowledging these elements provides a more rounded view and demonstrates journalistic integrity.

For instance, if a company reports a strong financial performance amid a struggling market, it’s crucial to explore how economic headwinds could impact future growth. Discussing potential risks makes the story more credible.

6. Acknowledge the impact of external factors

Do not overlook the influence of external factors such as national or global economic conditions, regulatory changes, political pressures and global events. These elements often have a significant impact on a company's financial results and future outlook.

For instance, when a company reports declining sales due to supply chain disruptions caused by a pandemic, tariffs or an invasion of a faraway nation, it illustrates how intertwined the business world is with external dynamics. Understanding these impacts adds vital context to a financial story. Experts can provide unbiased analysis for your audience.

7. Tell a narrative

Every financial report tells a story, but it’s your narrative that can make it compelling. Journalists should aim to weave the numbers into a storyline that captures the company’s journey in a way that is understandable and attracts your audience.

For example, instead of merely reporting that profits increased by 25%, a story could delve into what drove the growth, such as new product launches, market expansion or same-store sales improvement. You can include quotes from company executives to humanize the data, turning cold numbers into a relatable story.

Use your sources inside companies and corporate boards to take your audience inside the boardroom. Was there a showdown? How was a big decision made? How was the CEO's fate decided? How did the product launch come about? What led to the PR disaster last month?

Your sources should not only include company officials but outside watchdogs, including corporate gadflies such as dissident shareholders or nonprofit groups opposed to certain corporate policies. You are a reporter, not a public relations representative for the company. And you are a writer seeking to connect with a public audience, not a government officials writing a bureaucratic economic treatise.

8. Use real-life examples

Integrating real-life examples or case studies can illustrate points and create a more engaging narrative. Journalists can describe a specific situation where certain financial strategies led to success or failure within the company.

For example, discussing how a unique marketing campaign significantly impacted a company's quarterly profits can ground the narrative in reality. Such specifics lend authenticity to the financial story and resonate with readers.

9. Incorporate visuals

Incorporating visual aids such as charts, graphs and tables can significantly bolster a financial story. These visuals help convey data in a more engaging and easily interpretable manner.

For example, a line graph showing significant profit increases over several quarters can provide visual proof of a company’s financial trajectory. Changes over time are a key way to visualize corporate performance. If there has been a change in leadership, combine your graph with a timeline to demonstrate whether progress has (or has not) been made.

Additionally, infographics that compare the company to industry peers can offer added insight at a glance.

10. Use quotes from industry experts

Quotes from industry experts, analysts, or executives can lend authority to a financial report. These voices can contextualize the data and provide additional insight into the implications of financial performance.

A journalist could include a quote from a financial analyst discussing the implications of rising costs on a manufacturing firm's bottom line. This expert commentary adds depth and reinforces key points made throughout the article. Without the expert's voice, your conclusions are just your opinion. If your analysis is backed up by outside quotations, it becomes more authoritative.

11. Conclude financial stories with future outlook

A strong conclusion wraps up the narrative and provides insights into future expectations. Here, journalists can discuss the company’s strategic plans and projections based on recent performance.

For instance, after summarizing a company’s financial achievements, a journalist might outline how new product lines could shape the forecast. It's also a good time for assessing the future of the company's leadership team or the industry's future. This forward-looking aspect keeps readers engaged and provides a broader perspective on the story.