Form 10-K
Form 10-K is a comprehensive report filed annually by a publicly traded company about its financial performance and is required by the U.S. Securities and Exchange Commission (SEC). Some of the information a company is required to document in the 10-K includes its history, organizational structure, financial statements, earnings per share, subsidiaries, executive compensation, and any other relevant data.
Definition: A 10-K is a detailed annual financial report that publicly traded companies in the United States must file with the Securities and Exchange Commission (SEC). It includes audited financial statements, Management's Discussion and Analysis (MD&A), and a detailed description of the company's business and financial condition. The 10-K report aims to provide a comprehensive overview of the company's financial health, helping investors make informed investment decisions.
Origin: The origin of the 10-K report dates back to the Securities Exchange Act of 1934, which required publicly traded companies to regularly file financial reports with the SEC. The initial purpose was to increase market transparency and protect investors' interests. Over time, the content and format of the 10-K report have evolved to meet changing market demands and regulatory requirements.
Categories and Features: The 10-K report is typically divided into four main sections:
1. Business Section: Provides a detailed description of the company's business model, products and services, market position, etc.
2. Financial Data: Includes audited financial statements such as the balance sheet, income statement, and cash flow statement.
3. Management's Discussion and Analysis (MD&A): Management's analysis and discussion of the company's financial condition and operating results.
4. Risk Factors: Lists potential risks that could affect the company's business and financial condition.
Specific Cases:
1. Apple Inc.: Apple's 10-K report provides detailed descriptions of its product lines (such as iPhone, iPad, Mac), global market strategy, R&D investments, and market competition and technological risks.
2. Tesla Inc.: Tesla's 10-K report includes sales data for its electric vehicles and energy products, production capacity, future development plans, and competition with traditional automakers.
Common Questions:
1. Why is the 10-K report so important? The 10-K report provides comprehensive financial and operational information about the company, helping investors assess the company's health and future prospects.
2. How to read a 10-K report? Investors should focus on the financial statements, MD&A section, and risk factors to gain a thorough understanding of the company's financial performance and potential risks.
