All public companies are required to file a Form 10-K annually with the SEC. Included in the 10-K is the complete financial statement and additional financial data and information than what can be found in the audited statement. The additional information is not audited but is filed with management’s assertations of its veracity.
Not every company provides the same type of information, but many have a multi-year summary of operations and key statistics, net sales of each business segment and its growth and geographic information, the segment’s percentage of total sales, operating income compared to the previous year, worldwide sales changes reconciled by organic and currency translation changes, and through acquisitions or divestitures. Also shown is the number of worldwide employees.
Additional information that are in many 10-Ks are non GAAP earnings and reconciliations between the GAAP and non-GAAP amounts, free cash flow calculations and discussions, EBITDA calculations, extensive reviews of segment performance, very revealing research and development information and updates, details of capital expenditures and depreciation and amortization expense deductions, liquidity and capital resources, debt data and critical accounting policies. Typical users that would find this information helpful are investors and potential investors, competitors, lenders, suppliers, customers and even employees.
10-Ks can be obtained on line for almost every public company. You can easily perform an Internet search by entering the company name followed by “10-K.” This usually will bring you to two sites: the company site which I prefer and the SEC.gov Edgar site which I find harder to navigate. There are also commercial sites that have the 10-Ks which show up when you do the search.
If you follow a company you are particularly interested in, try going online and downloading the 10-K. If you need help, email me with your phone number and I’ll call you to arrange to walk you through it.
Do not hesitate to contact me with any business or financial questions at [email protected] or fill out the form below.
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