Course 105: Financial Reports and How to Read Them
10-K Reports
In this course
1 Introduction
2 Annual Reports
3 10-K Reports
4 10-Q Reports
5 Other Forms

Every company also has to file a 10-K report each year to the SEC, which is similar to the annual report but without the flashy graphics and PR hype. A company's 10-K will sometimes have more complete financial statements than its annual report, as well as a more complete management’s discussion section, offering more details and discussion of such minutiae as pensions and taxes. If you are looking for that kind of information, the 10-K is for you. But for most people, the most valuable parts of the 10-K are the sections that are required by the SEC, which often aren’t discussed in the annual report.

  • A detailed description of the company’s business, including breakdowns of its performance by geographical region and business segment. If you want to know exactly what a company does, this is the best place to find it. The business description is always at the beginning of a 10-K, so it’s hard to miss.
  • A description of any legal proceedings in which the company is involved. This information can be important, especially for companies in controversial industries such as tobacco.
  • A list of all the company’s executives, including how much they are paid.
  • A detailed discussion of the risks involved in the company’s business and the major competitors it faces. This information is especially important regarding small businesses in rapidly changing industries.
  • The bylaws of the company, and sometimes other legal documents.

Next: 10-Q Reports >>

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