Everton turned a £6.4million loss into a £700,000 profit for the financial year ending May 2013.
A sixth-placed Premier League finish generated a greater increase in broadcast revenue and gate receipts which helped boost operating profit before player trading was taken into consideration.
The figures do not include any of the summer transfers, which saw the Toffees make a profit in the region of £10million after offloading Marouane Fellaini and Victor Anichebe for a combined £33.5million and bringing in James McCarthy, Arouna Kone and Joel Robles on permanent deals and Gareth Barry, Romelu Lukaku and Gerard Deulofeu on loan. Nor do they include compensation paid to Wigan for manager Roberto Martinez.
The financial report also does not take into account the new Premier League broadcast deal which began last August.
No provision is included in the accounts for either transfer fees of £6.1million which are contingent upon future appearances of certain players, or signing on/bonus payments of £5.07million due to players who are still in the service of the club on specific future dates.
Everton's wage bill was largely unchanged for the 12 months to May 2013, aided by a small reduction in the number of players, training and management staff.
There was also a small decrease of £700,000 in borrowing and a smaller reduction in operating costs.
"Each year when I sit down to carry out my review of the previous year I focus on whether our club is in a better position than it was a year ago," chairman Bill Kenwright wrote in the annual report.
"And while we have undoubtedly gone through a period of change the answer can only be a resounding 'yes'."
Chief executive Robert Elstone added: "I am also pleased that we have seen growth in all revenue streams, reductions in our cost base and debt levels slightly reduced.
"It's a very solid financial position that means we are well placed to take advantage of the new Premier League broadcast deal, already flowing through into our 2013-14 numbers."