What is a 10K report?
A 10K report — also known as Form 10K — is a document that US public companies must submit to the Securities Exchange Commission annually. It is a summary of an organization's financial performance that keeps the company's investors or prospective investors informed about the company's financial stature and business activities.
What kind of companies file a 10K report?
Contrary to popular belief, public companies aren't the only ones who have to submit a 10K. While public companies must file 10K reports to the SEC annually, so must businesses with over $10 million in assets held by 2000 or more people.
What does a 10K report contain?
The 10K contains information like company history, organizational structure, equity and subsidiaries holdings, key financial indicators like earnings per share, and audited financial statements. Companies must file their 10K within 60 days of their fiscal year end.
The 10K includes fifteen sections, which you can view on the SEC's website, but for this summary, here are some key sections in the 10K:
Business: This section outlines the company's operations, its products, and services.
Risk Factors: This section describes the potential risks a company does face or could face in the future.
Selected Financial Data: In this section, the company discloses specific financial information, including a five-year overview of its financial data and recent performance.
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A): In this section, the company explains the financial results of the past year. The MD&A gives management the opportunity to explain these business result of the past fiscal year in their own words.
Financial Statements and Supplementary Data: In this section, the company appends its audited financial statements, including the balance sheet, cash flow statement, and income statement. These financial statements give investors an idea of the company's profitability and ROI (return on investment). The company also has to include a letter from the auditor certifying their review.
What is a 10Q report?
The definition of a 10Q is similar to a 10K, but is less exhaustive than the financial statements in the 10K. The 10Q is broken into two distinct sections. The first contains condensed financial statements, MD&A, risk disclosures, and internal controls. The second provides information about legal proceedings and equity securities. SEC reporting public companies must submit three 10Qs yearly. (The 10K covers the final fourth quarter.)
10K vs. 10Q: what's the difference?
10K reports are annual and must include audited financial statements. 10Q reports are quarterly and include unaudited financial statements.
Where to find 10K and 10Q reports?
You can read and review 10K and 10Q reports through the SEC's filing database, EDGAR.
When are 10K reports due?
Large accelerated must file their 10-K 60 days after quarter end.
Accelerated must file their 10-K 75 days after quarter end.
Non-accelerated filers must file their 10-K 90 days after quarter end.
When are 10Q reports due?
Large accelerated and accelerated filers must file their 10-Q 40 days after quarter end. Non-accelerated filers must file their 10-Q 45 days after quarter end.