10-K is a comprehensive report submitted annually by a publicly traded company on its financial performance and is required by the United States Securities and Exchange Commission (SEC). The report contains much more detail than a company’s annual report, which is sent to its shareholders before an annual meeting to elect the company’s directors.
Some of the information a company is required to document in 10-K includes its history, organizational structure, financial statements, earnings per share, subsidiaries, executive compensation, and any other relevant data.
The SEC requires this report to keep investors aware of a company’s financial condition and to allow them to have sufficient information before buying or selling stock in the company or before investing in the company’s corporate bonds.
Due to the depth and nature of the information they contain, 10K’s are quite long and tend to be complicated. But investors need to understand that this is one of the most comprehensive and important documents a public company can publish on an annual basis. The more information they can glean from 10-K, the more they can understand the company.
The government requires companies to publish 10-K forms so that investors have vital information about the companies so they can make informed investment decisions. This module provides a clearer picture of everything a company does and the type of risks it faces.
The 10-K comprises five distinct sections:
This provides an overview of the main operations of the company, including its products and services (that is, how it makes money).
These outline all the risks the company faces or may face in the future. Risks are generally listed in order of importance.
Selected financial data:
This section provides specific financial information about the company for the past five years. This section presents a more short-term view of the company’s recent performance.
Discussion and analysis of the management of the financial condition and the results of the operations. Also known as MD&A, this gives the company the opportunity to explain the previous fiscal year’s business results. This is the section wherever the corporate will tell its story in its own words.
Financial statements and supplementary data:
This includes the company’s audited financial statements, including income statement, balance sheet and cash flow statement. Also included in this section is a letter from an independent auditor of the organization demonstrating the extent of its verification.
A 10K filing also includes letters signed by the company’s CEO and CFO. In it, executives swear that the information contained in 10-K is correct. The letters became a necessity after a series of high-profile lawsuits regarding account fraud following the dot-com bankruptcy.
Where to find a 10-K
In particular, 10K documents are readily available through public information and various sources. In fact, a number of companies include them in the Investor Relations section of their website. The data included in the 10K can be difficult to navigate around, but the more investors become familiar with the layout and the information included in the data, the easier it will be to identify the most important detail.
Take a look:
A 10-K is a comprehensive report submitted annually by public companies on their financial performance.
The report is required by the United States Securities and Exchange Commission (SEC) and is much more detailed than the annual report.
Information in 10-K includes company history, financial statements, earnings per share, and any other relevant data.
10K is a useful tool for investors to make important investment decisions.
Deadlines for submitting 10-K
The deadline for submitting 10 depends on the size of the company. According to the SEC, companies with free found 700 million or more publicly available for business- including public free flats – must file 10 of them within 60 days of the end of their fiscal year. Companies have between 75 million to 700 700 million, floating companies have 755 days, and companies with less than 5 5 million have 90 days.
Forms 10-Q and 8-K
Along with 10-K, the SEC requires public companies to submit forms 10-Q and 8-K regularly.
Form 10-Q has to be submitted to SEC on quarterly basis. This module includes a comprehensive report on an organization’s performance and relevant information on its financial position. Unlike the 10-K, the information in the 10-Q is usually not verified. The company is only required to present it three times a year since the 10-K is presented in the fourth quarter.
However, Form 8-K is required by the SEC whenever companies announce important events that shareholders need to be aware of. These events may include (but are not limited to) sales, acquisitions, de-listings, departures and elections of directors, as well as changes in the status or control of a company, bankruptcies, information on operations, assets and any other relevant news.