A Form 10-K report is an annual report of all public companies in the United States. The US Securities and Exchange Commission (SEE) requires it each year and must be filed within 90 days after fiscal year-end. The report contains a thorough review of company performance. A similar report, but filed quarterly, is a form 10-Q report.
Form 10-K contents
The document contains comprehensive information, not only audit financial reports but also business condition and performance such as ales, operating income, business segment performance, organizational structure, and executive market compensation.
Typically, form 10-K has the following five specific sections:
- Business. It includes a general description of the company’s core business, such as products and services. Also, companies explain how they make money.
- Risk factor. Companies explain in detail all the risks faced or will be faced. They discuss each type of risk, often based on its significance to the company’s business.
- Financial data highlight. In this section, companies present a summary of financial information for the past five years.
- Management discussion and analysis. Usually, analysts read this section comprehensively because a lot of valuable pieces of information are here. Management discusses fiscal year results in this section, such as sales performance, production, expansion, expansion plans, market share, and so forth.
- Financial statements and additional data. This section comprises a complete audit financial statement, including balance sheet, income statement, statement of cash, and statement of changes in equity.