Form 10-K: Meaning, Components, Filing Deadlines & FAQs

A 10-K is a comprehensive annual report filed by publicly traded companies with the U.S. Securities and Exchange Commission (SEC). The U.S. Securities and Exchange Commission (SEC) mandates that publicly listed companies file a 10-K, a thorough report detailing their financial performance, once a year. Compared to a corporation’s annual report, which is distributed to shareholders before an annual meeting when corporate directors are elected, the report is far more detailed. A company’s history, organizational structure, financial statements, profits per share, subsidiaries, executive remuneration, and any other pertinent information are among the details that must be included in the 10-K. The SEC mandates this report to furnish investors with ample details enabling them to make informed choices regarding the buying or selling of company shares or corporate bonds.

Key Takeaways

• A 10-K is a detailed financial performance report that public firms file once a year.
• The U.S. Securities and Exchange Commission (SEC) mandates the report, which is significantly more thorough than the annual report.
• The firm history, financial statements, profits per share, and any other pertinent information are all included in the 10-K.
• Form 10-K is an effective instrument that helps investors make critical investment decisions.

1. Business: This is a summary of the primary business activities of the company, including its goods and services (i.e., how it generates revenue).

2. Risk Elements: These list every risk the business has or might have in the future. Usually, the hazards are presented in priority order.

3. Specific Financial Information: The company’s particular financial data over the previous five years is provided in this section. This section gives a more immediate overview of the business’s performance as of late.

4. Management’s Discussion and Analysis of Financial Condition: The financial situation and operational outcomes are discussed and analyzed by management. This section is also referred to as MD&A. MD&A provides the corporation with a chance to justify its financial performance from the preceding fiscal year.

5. Financial Statements and Supplementary Data: This comprises the income statement, balance sheets, and statement of cash flows from the company’s audited financial statements. This part also contains a letter from the company’s independent auditor attesting to the extent of their assessment.

1. Multiple Access Points: 10-K filings are readily available to the public through various channels.

2. Company Websites: Major companies typically list their 10-K reports in the Investor Relations section of their websites.

3. Public Databases: Additionally, these filings are accessible through public databases such as the SEC’s EDGAR system.

4. Challenges in Navigation: While 10-K reports can be dense, with practice, investors can become more adept at navigating them.

5. Focus on Key Information: It may take time to sift through all the information, but investors should focus on key sections like the Business Overview, Risk Factors, Financial Statements, and Management Discussion & Analysis (MD&A).

6. Increasing Familiarity: With familiarity, investors will find it easier to extract the most critical insights from these reports.

1. Filing Deadlines by Size: The timing for submitting Form 10-K, the comprehensive annual report, varies based on the company’s size, particularly its public float.

2. Big Players: Larger companies with a public float of $700 million or more are required to submit their 10-K within 60 days after the end of their fiscal year. This shorter timeframe reflects the expectation of more robust reporting capabilities and resources.

3. Mid-Size Zone: Companies with a public float ranging between $75 million and $700 million have a slightly longer window, with a deadline of 75 days after the close of their fiscal year. This additional time allows for thorough preparation and review of financial disclosures.

4. Small Fry: Smaller companies, those with a public float less than $75 million, are given the most time, with a 90-day deadline after the fiscal year ends. This extended period recognizes the potential limitations in resources and personnel for smaller firms to compile and review their financial data.

The 10-K provides a lot of important financial performance information about the company; this includes audited financial statements for the past two or three years, what the company does, its industry, and its subsidiaries, the potential challenges it faces, and any material legal proceedings. Investors require all this key information to make important business decisions. Using Form 10-K, investors can ascertain associated business risk with the companies.

What are 10-K risk factors?

These parts are included in the 10-K: “Business” refers to the primary goods and services offered by the firm. This is an important thing to learn about the business. The section “Risk Factors” contains details on the company’s major hazards, which are often ranked in order of significance.

What is included in a 10-K?

Key financial indicators, including profits per share, organizational structure, equity and subsidiary ownership, and audited financial statements, are all included in the 10K. Companies have ninety days from the end of their fiscal year to file their Form 10-K.

What’s the difference between a Form 10-K and an annual report?

• Both offer data on the performance of the firm, however:
• Form 10-K: SEC-mandated, more comprehensive, standard format; less readable.
• Annual report: not mandated by the SEC but more succinct, simpler to read, and contains graphs and pictures.

Is there any other form that needs to be filed along with Form 10-K?

Public firms are required by the SEC to submit forms 10-Q and 8-K on a regular basis in addition to the 10-K. The SEC must receive Form 10-Q submissions on a quarterly basis. This document provides a thorough assessment of a business’s operations and also contains pertinent financial data. However, the SEC requires Form 8-K anytime a company announces a significant event that shareholders need to be informed of.

Who uses Form 10-K?

• Investors: Examine the financial standing of a business before making an investment.
• Analysts: Do due diligence on businesses and make investment suggestions.
• Creditors: Evaluate the creditworthiness of the business.
• The Public: Learn about the hazards and workings of a corporation.

Where is the Form 10-K available?

Form 10-Ks are available on the SEC website or you may discover the form through the investor relations portion of the company’s website.

Reference:

• U.S. Securities and Exchange Commission
• U.S. Securities and Exchange Commission| How to Read 10-K

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.