Finxpd
    Facebook Twitter Instagram
    Finxpd
    • Home
    • Education
      • Cryptocurrencies
      • Stocks
      • Forex
      • Commodities
      • Economies
      • Investing
      • Technologies
      • Career Planning
    • Financial
      • Credit cards
      • Banking
      • Insurances
      • Retirement Planning
      • Taxes
      • Brokers
      • Regulations
      • Funds & Loans
    • Reviews
      • Popular Brokers
      • Popular Savings Accounts
      • Popular Credit Cards
      • Popular Personal Loans
      • Popular Student Loans
      • Popular Stocks
      • Popular Low Spread Brokers
      • Popular Insurances
    • Comparison
      • Broker
      • Stock Investment
      • Cryptocurrency Exchanges
      • Financial Advisors
    • About us
    • Contact
    Finxpd
    Home » Form 10-K: The Ultimate Cheat Sheet to Analyze Public Companies
    Form 10-K
    Financial

    Form 10-K: The Ultimate Cheat Sheet to Analyze Public Companies

    February 1, 2023Updated:March 23, 20237 Mins Read40 Views
    Share
    Twitter LinkedIn Facebook Reddit Telegram WhatsApp Email

    In the United States, publicly listed corporations submit form 10-K with a comprehensive report of their yearly financial performance. This form must be submitted to the Securities and Exchange Commission (SEC) within 60 days after the end of the fiscal year. However, you can find out the details of it in this article.

    List of Contents

    • What Exactly Is a Form 10-K?
    • Understanding a Form 10-K
    • 5 Different Sections of a Form 10-K
      • 1. Financial statements and supplementary data
      • 2. Management’s discussion and analysis
      • 3. Selected financial data
      • 4. Risk factors
      • 5. Business
    • Form 10-K Users
    • Where to Find a Form 10-K?
    • Deadlines of a Form 10-K Filing
    • Alternatives to Form 10-K
    • Form 10-Q and Form 8-K
    • Advantages of a Form 10-K
      • 1. The Independent Auditor’s Letter
      • 2. Letters Signed by the CEO and CFO
      • 3. Accounting Policies and Practices
    • Conclusion
    • FAQs

    What Exactly Is a Form 10-K?

    Form 10-K

    A form 10-K is a detailed report on a publicly listed company’s financial performance that is required by the United States Securities and Exchange Commission (SEC). The report is far more detailed than a firm’s annual report, distributed to shareholders before the annual meeting to elect company directors.

    In addition, form 10-K must include information such as a company’s history, organizational structure, financial statements, profits per share, subsidiaries, executive remuneration, and any other relevant data. The SEC requires this report to notify investors about a company’s finances before they buy or sell shares or bonds.


    Understanding a Form 10-K

    Form 10-K

    Due to the breadth and nature of the information they provide, form 10-K tends to be lengthy and complex. However, investors must recognize that this is one of the most complete and significant papers a public business may publish yearly. The more information they glean from the 10-K, the greater their comprehension of the organization.

    The government compels corporations to post 10-K forms so that investors may make educated investment decisions based on core company facts. This form provides a complete view of a company’s activities and the dangers it confronts.


    5 Different Sections of a Form 10-K

    5 Different Sections of a Form 10-K

    1. Financial statements and supplementary data

    This comprises the company’s audited financial documents, such as its income statement, balance sheet, and cash flow statement. This part also contains a letter from the company’s independent auditor attesting to the extent of their assessment.

    2. Management’s discussion and analysis

    This section, the MD&A section, allows the corporation to describe its business performance from the preceding fiscal year. This area is where the organization may share its own story.

    3. Selected financial data

    This section describes the company’s financial performance over the past five years. This section provides a closer look at the company’s recent performance.

    4. Risk factors

    These detail any threats the organization confronts or may encounter in the future. Typically, the dangers are ordered in order of significance.

    5. Business

    This summarizes the company’s principal operations, including its goods and services.

    Nevertheless, a form 10-K filing also includes letters signed by the organization’s chief executive officer and chief financial officer. In it, the CEOs affirm under oath that the 10-K contains truthful information. After many high-profile examples of accounting fraud following the dot-com crash, these letters were mandatory.


    Form 10-K Users

    Form 10-K

    Publicly traded corporations file Form 10-K. Once it has been filed, investors and prospective investors use it. It enables them to examine the precise ways business functions and generates revenue. It also describes where the firm works and the dangers it faces, including any active or ongoing litigation. This information enables investors to make educated judgments on whether or not to trade or hold the company’s shares.


    Where to Find a Form 10-K?

    Where to Find a Form 10-K?

    Significantly, form 10-K filings are publicly published and readily accessible from various sources. In reality, most corporations feature them on their Investor Relations pages. The information contained in form 10-K can be difficult to navigate. However, as investors become more familiar with the style and types of information presented, finding the most crucial element will likely become simpler.


    Deadlines of a Form 10-K Filing

    Form 10-K

    The form 10-K filing deadline varies depending on the size of the organization. According to the SEC, companies with a public float of $700 million or more must file their 10-K within 60 days of their fiscal year. Firms with a float of $75 million to $700 million have 75 days, whereas companies with a float of less than $75 million get 90 days.


    Alternatives to Form 10-K

    Alternatives

    Form 10-Q filings are shorter versions of form 10-K filings. The SEC receives the form 10-Q report after each business quarter. Investors can also access it through a company’s website.


    Form 10-Q and Form 8-K

    Form 10-Q and Form 8-K

    Along with the 10-K, the SEC mandates public corporations to file forms 10-Q and 8-K regularly. Every quarter, form 10-Q must be submitted to the SEC. This form is a detailed report on a company’s performance that contains pertinent financial information. In contrast, to form 10-K, the information in the form 10-Q is often unaudited. Since form 10-K was submitted in the fourth quarter, the corporation only needed to fill it out three times a year.

    On the other hand, the SEC requires form 8-K anytime a company announces a big event that shareholders should be informed of. Examples are sales, acquisitions, delistings, departures, executive elections, changes in corporate status or ownership, bankruptcies, operations, assets, and other relevant news.


    Advantages of a Form 10-K

    Advantages

    1. The Independent Auditor’s Letter

    This letter should describe the breadth of the auditing firm’s certification of the financial records and any significant problems it discovered. If the auditor thinks the firm will fail, they may ask about its ability to continue as a going concern or something similar. If you ever see such phrases, you should be on high alert.

    2. Letters Signed by the CEO and CFO

    The CEO and CFO must provide signed statements stating that, to their knowledge, the company’s records are correct. The government uses these letters to punish CEOs who falsify their form 10-K or other necessary disclosures on purpose.

    3. Accounting Policies and Practices

    Assume you are thinking about investing in a washing machine company. Thousands of models are breaking down beyond repair, causing the corporation to make national headlines. Is the corporation responsible for reclaiming them from customers? A corporation must disclose its warranty policy and projected warranty expenses for items it sells or produces in its form 10-K filing.


    Conclusion

    In conclusion, annual reports and form 10-K must be submitted on a single page, with the annual report beginning with a review of the company’s financial results. A competent analyst must thoroughly study and understand both papers before making investing judgments. In addition, an analyst must study the risk elements within and outside the corporate environment to appropriately comprehend the organization.


    FAQs

    1. What is Form 10-K?

    Form 10-K is an annual report that publicly traded companies are required to file with the Securities and Exchange Commission (SEC) to provide detailed financial information about their business.

    2. When is Form 10-K due?

    Form 10-K is due within 60 days after the end of a company’s fiscal year, or 75 days if the company has a market capitalization of less than $700 million.

    3. Who is required to file Form 10-K?

    All publicly traded companies in the United States are required to file Form 10-K with the SEC.

    4. What is the difference between Form 10-K and Form 10-Q?

    Form 10-K is an annual report that provides a comprehensive overview of a company’s financial performance and operations, while Form 10-Q is a quarterly report that provides updates on a company’s financial results.


    Related Articles:

    • Getting a Forex Broker License in Various Jurisdictions
    • Form 8-K: A Timely Notification of Important Changes
    • Brokers Regulations: What Traders Need to Know

    Read more: Regulations

    Source: The Balance

    Regulations
    Share. Twitter LinkedIn Facebook Reddit Telegram WhatsApp Email

    Related Posts

    Debit Cards in India: Types, Benefits, and How to Apply

    February 15, 2023

    MISA License: Everything You Need to Know

    February 14, 2023

    Form 10-Q: An Important Quarterly Financial Performance Report

    February 1, 2023

    Good APR for a Credit Card: The Important Thing to Know

    January 31, 2023
    • Twitter
    • YouTube
    • LinkedIn
    • TikTok
    POPULAR
    Yield Farming VS Staking: Which Is the Better Long-Term Investment?
    June 23, 2022
    Top 10 In-Demand Careers You Need to Know about in 2023
    November 30, 2022
    5 Tips for Profitable Real Estate Investment in India (2023)
    February 17, 2023
    Risk Disclaimer: Finxpd will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of Finxpd or its employees.

    Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review.

    Menu
    • Home
    • Education
    • Financial
    • Reviews
    • About us
    Top Insights
    eOption Broker Review: The Ultimate Broker for Trading on the Dollar
    March 24, 2023
    Best Safe-Haven Investments in 2023: Get Rich and Stay Safe
    March 24, 2023
    Twitter LinkedIn YouTube TikTok
    • Home
    • Education
    • Financial
    • Reviews
    • About us
    Copyright © Finxpd 2023. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.