investing

Tackling the Corporate 10-K, Annual Report

Don't be intimidated by a company's 10-K report, the annual report that businesses must file with the Securities and Exchange Commission.

Don't be intimidated by a company's 10-K report, the annual report that businesses must file with the Securities and Exchange Commission. You'll become an expert in no time.

1. Start at the beginning, which gives a detailed yet simple description of the company and its business.

2. Read the section on risk factors. Companies are often brutally honest, so they can say they told you so if worst comes to worst.

3. Compare the company's operating income -- the money the firm made from its stated business -- with net income. If it's making (or losing) significant amounts from something other than operations -- say, investments or accounting maneuvers -- you will want to know.

You can often find telling details about the business by reading the notes to the financial statements.

Look for an "unqualified" approval from auditors. Anything else is a red flag.

NEXT: Open a Brokerage Accoung

JUMP TO:

 

Finance

 

Credit

 

Retirement

 

Investing

FINANCIAL TOOLKIT MAIN PAGE

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
October 13, 2021
4 Big Retirement Blunders (and How to Avoid Them)
retirement

4 Big Retirement Blunders (and How to Avoid Them)

It’s too bad, but financial advisers see these four mistakes all the time. Don’t fall into the same traps.
October 6, 2021

Recommended

The Pros and Cons of Target Date Funds with Tony Drake
Financial Planning

The Pros and Cons of Target Date Funds with Tony Drake

The simplicity of target date funds has made them popular, particularly among 401(k) savers. But investors may be paying a price.
October 19, 2021
Robo-Advisers: Weighing the Worth of Automated Advice
investing

Robo-Advisers: Weighing the Worth of Automated Advice

Some people do just fine with bare-bones advice that’s essentially generated by an algorithm. Until your financial life gets more complicated, you mig…
October 17, 2021
Yogi Berra Quotes Investors Can Live By
investing

Yogi Berra Quotes Investors Can Live By

Baseball legend Yogi Berra was wise, in his own muddled way, about more than just sports. His words hold truth in life – and in investing. Here are th…
October 13, 2021
Is Stagflation a Serious Market Risk?
investing

Is Stagflation a Serious Market Risk?

High inflation and corporate warnings of supply chain issues have brought stagflation fretting to a fever pitch.
October 12, 2021