An executive summary is a key section of a document that provides a brief but comprehensive overview of the entire report. It allows readers to understand the main points without having to read the entire paper. This is especially useful for busy professionals, such as executives, government officials, and business leaders, who need to make informed decisions quickly. It also helps guide readers to sections where they can find more detailed information if needed.

Remember an executive summary is different from abstract. Refer to “How to Write an Abstract” and “Abstract vs. Executive Summary: Key Differences and Similarities” for more information.

Executive Summary Key Elements

• Background information: This should be short.
• Purpose statement: State the purpose of your paper clearly.
• Objectives: Describe major report objectives.
• Methodology: Describe the methodology. 
• Results/findings: List major findings of the paper.
• Problem statement: Identify the research gap. Explain what the problem is.
• Conclusion: Mention the conclusion the report makes.
• Limitations: State limitations if applicable.
• Recommendations: State the recommendations if applicable.

Executive Summary Example

(1) This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Outdoor Equipment Ltd. (2) Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios. Other calculations include rates of return on Shareholders Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices. 

(3) Results of data analyzed show that all ratios are below industry averages. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management. 

(4) The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. (5) Recommendations discussed include

• Improving the average collection period for accounts receivable
• Improving/increasing inventory turnover
• Reducing prepayments and perhaps increasing inventory levels

(6) The analysis conducted has limitations, including

• Forecasting figures are not provided
• Nature and type of company is not known
• The current economic conditions
• There are data limitations as not enough information is provided or enough detail i.e. monthly details not known; results are based on past performances, not present.

Source: Woodward-Kron, R. (1997). Writing in commerce: A guide to assist Commerce students with assignment writing (Revised edition). Centre for the Advancement of Teaching and Learning: The University of Newcastle

Annotations

1) General purpose of the report. 

(2) Methodology used. 

(3) Result or major findings. 

(4) Conclusion ,the ultimate message of the report. 

(5) Recommendations. 

(6) Limitations.