10-K

Definition

The 10-K is an annual report that provides a comprehensive overview of a public company's financial performance and operations. It is a crucial document that companies must file with the U.S. Securities and Exchange Commission (SEC), serving as a primary source of information for investors, intermediaries, and other market participants to assess the company's financial health and make informed decisions.

5 Must Know Facts For Your Next Test

1. The 10-K report provides a comprehensive overview of a company's business, financial condition, and results of operations, including audited financial statements.
2. The 10-K must be filed within 60 to 90 days after the end of a company's fiscal year, depending on the company's size and reporting status.
3. The 10-K report includes information on a company's risk factors, management's discussion and analysis (MD&A) of financial condition and results of operations, and detailed financial statements.
4. The 10-K report is a critical document for investors and other market participants to assess a company's financial health, growth potential, and investment risks.
5. Failure to file a timely and accurate 10-K report can result in regulatory penalties and negatively impact a company's reputation and access to capital markets.

Review Questions

• Explain how the 10-K report helps investors and other market participants interact with a company.
  • The 10-K report provides a comprehensive overview of a company's financial performance, operations, and risk factors, which is essential information for investors and other market participants to make informed decisions. By reviewing the 10-K, investors can assess the company's financial health, growth potential, and investment risks, allowing them to make more informed decisions about whether to invest in the company. Additionally, intermediaries, such as financial analysts and advisors, rely on the 10-K to provide their clients with detailed insights and recommendations about the company.
• Describe the role of the 10-K report in the regulatory environment and its impact on a company's reputation and access to capital markets.
  • The 10-K report is a mandatory filing with the SEC, and failure to file a timely and accurate report can result in regulatory penalties and negatively impact a company's reputation and access to capital markets. Investors and other market participants view the 10-K as a reliable source of information about a company's financial condition and operations, and any discrepancies or issues identified in the report can erode investor confidence and make it more difficult for the company to raise capital or maintain its share price. Consequently, the 10-K report plays a crucial role in the regulatory environment, as it ensures that publicly traded companies are providing accurate and transparent information to the market, which is essential for the efficient functioning of capital markets.
• Analyze how the information provided in the 10-K report can be used by investors, intermediaries, and other market participants to assess a company's financial health and make informed investment decisions.
  • The 10-K report contains a wealth of information that investors, intermediaries, and other market participants can use to assess a company's financial health and make informed investment decisions. The report includes audited financial statements, management's discussion and analysis (MD&A) of the company's financial condition and results of operations, and detailed information on the company's risk factors, business segments, and competitive landscape. By analyzing this information, investors can evaluate the company's profitability, liquidity, solvency, and growth potential, as well as identify potential risks and challenges that may impact the company's future performance. Intermediaries, such as financial analysts and advisors, can use the 10-K report to provide their clients with in-depth analysis and recommendations, helping them make more informed investment decisions. Overall, the 10-K report is a critical tool for market participants to understand a company's financial health and make informed decisions about their investments.

Related terms

Annual Report: A comprehensive report on a company's activities throughout the preceding year, intended to give shareholders and other interested people information about the company's financial performance, activities, and management.

SEC Filings: The set of documents that publicly traded companies are required to file with the U.S. Securities and Exchange Commission (SEC) to disclose information about their financial performance, operations, and other relevant details.

Disclosure: The act of making information about a company's financial condition, operations, and other relevant details publicly available, often through required regulatory filings.