How to Read a 10-K
An investor can find a wealth of information in a company’s Form 10-K. Filed annually, the 10-K offers a detailed picture of what the company does, and the risks it faces. It also includes the company’s financial report.
The 10-K includes these sections:
- “Business” describes the company’s main products and services. This is a good place to start to understand the company.
- “Risk Factors” includes information about significant risks that the company faces, generally listed in order of importance.
- “Selected Financial Data” provides certain financial information about the company for the last five years. You can find much more detailed financial information on the past three years in a separate section called, “Financial Statements and Supplementary Data.”
- “Management’s Discussion and Analysis of Financial Condition and Results of Operations” gives the company’s view on the business results of the past fiscal year. This section, known as the MD&A for short, allows company management to tell its story in its own words.
- “Financial Statements and Supplementary Data” contains the company’s audited financial statements, including the income statement, balance sheets, and statement of cash flows.