Understanding 10-Ks

Understanding 10-Ks

Due to the depth and nature of the information they contain, 10-Ks are quite long and usually complex. But investors need to understand that this is one of the most complete and important documents a public company can publish each year. The more information they can gather from 10-K, the more they can understand about the company.

The government requires companies to issue 10-K forms so that investors have fundamental information about companies so that they can make informed investment decisions. This form gives a clearer idea of ​​everything the company does and what types of risks it faces.

 Investors who know know that 10-K can also be obtained using the company's search function through the EDGAR SEC database.

10-K includes five separate sections:

 
Business. This provides an overview of the company's core operations, including its products and services (ie method of earnings).

Risk factors. They set out all the risks that the company faces or may face in the future. Risks are usually listed in order of importance.

Selected financial data. This section describes specific financial information about the company for the past five years. This section provides a brief overview of the company's recent performance.

Discussion and analysis by management of the financial condition and results of activities. Also known as MD&A, this gives the company the opportunity to explain its business results for the previous fiscal year. In this section, the company can tell its story in its own words.

Financial statements and additional data. These include the audited financial statements of the company, including the income statement, balance sheets and cash flow statement. This section also contains a letter from the company's independent auditor certifying the scope of their audit.

Declaration 10-K also includes signed letters from the CEO and CFO of the company. In it, executives swear under oath that the information included in 10-K is accurate. These letters became a requirement after several high-profile cases involving post-defeat accounting fraud.

 
Where to find 10-K

It should be noted that 10-K applications are publicly available information and are readily available from a number of sources. In fact, the vast majority of companies include them in the "Investor Relations" section of their website. The information included in 10-K can be difficult to transfer, but the more familiar investors are about the layout and type of information included, the easier it will likely be to identify the most important details.

10-K is a comprehensive report published annually by state-owned companies on their financial results.

The report is required by the US Securities and Exchange Commission (SEC) and is much more detailed than the annual report.

The information in 10-K includes corporate history, financial statements, earnings per share and any other relevant data.

10-K is a useful tool for investors to make important decisions about their investments.

10-K application deadlines

The application deadlines for 10-K depend on the size of the company. According to the SEC, publicly traded publicly traded shares worth $ 700 million or more must file their 10-Ks within 60 days of the end of their fiscal year. Companies with a floating price of $ 75 million to $ 700 million have 75 days, while companies with less than $ 75 million have 90 days.

Forms 10-Q and 8-K

In addition to 10-K, the SEC requires state-owned companies to submit 10-Q and 8-K forms on a regular basis.

 
Form 10-Q must be submitted to the SEC quarterly. This form is a comprehensive report on the results of the company and contains relevant information about its financial condition. Unlike 10-K, the information in 10-Q is usually unaudited. The company only has to file it three times a year, as 10-K is filed in the fourth quarter.

Although Form 8-K is required by the SEC when companies announce important events that shareholders need to be informed about. These events may include (but are not limited to) sales, acquisitions, delisting, departures and executive elections, as well as changes in the status or control of the company, bankruptcy, information about transactions, assets and any other relevant news.