Every Norwegian limited company is required to file annual accounts with the Register of Company Accounts (Regnskapsregisteret). The accounts give you a detailed picture of a company's finances — but knowing what to look for takes some practice. Here is a practical walkthrough.

The three parts of an annual report

A Norwegian annual report has three main parts:

  • The income statement shows what the company earned and spent during the year — revenue minus costs, and what is left over as profit.
  • The balance sheet is a snapshot of the company's assets, liabilities and equity on the last day of the year (31 December).
  • The notes explain the figures in the income statement and balance sheet. This is where you find information on depreciation, loans, and transactions with related parties.

Key figures in the income statement

Operating revenue (turnover) is the top line — what the company sold goods or services for. Operating profit (EBIT) is what remains after operating costs, and shows whether the core business is profitable. The net profit for the year is the final result after financial items and tax.

A company can have high revenue and still lose money — and conversely, a company with modest revenue can be very profitable if its costs are low. Always look at operating profit, not just revenue.

What the balance sheet tells you

The balance sheet has two sides, and they always match:

  • Assets — what the company owns: inventory, trade receivables, machinery, property, cash.
  • Liabilities and equity — who financed those assets: banks (debt) and the owners (equity).

Equity is the part the owners have contributed or earned over time. Positive and growing equity is a good sign. Negative equity means liabilities exceed assets — which can be a warning signal.

What should you look for?

When assessing a company through its accounts, three things are particularly worth examining:

  • Development over time — a single year tells you little. Compare three to five years to see trends in revenue, profit and equity.
  • Cash flow — a company can show a profit on paper and still run out of money. Check whether operations actually generate cash.
  • Leverage — how much of the business is financed with debt? High debt makes a company vulnerable to rate rises or a downturn.

Where do you find the annual accounts?

All filed annual accounts are public. You can find them at the Register of Company Accounts, or collected and searchable for every Norwegian company on Biztrac. On Biztrac the key accounting figures appear directly on the company page, alongside calculated ratios for liquidity, profitability and solidity.