Financial statements · updated October 21, 2026
What is a company's annual report and what is in it
The annual report is the document in which a company publishes its audited financial statements for the whole year and explains what happened in the business. It is the most complete source of information on a listed company, written by the company and checked by an auditor.
How it works
An annual report usually has: the letter from management (what went well and what did not), a description of the business and its risks, the financial statements (balance sheet, income statement, cash flow statement), the notes to the statements (details on debt, leases, lawsuits), the auditor's report, and information on the management team and its pay. In the US it is called the 10-K and is filed with the SEC. European companies publish it on their investor relations website, usually within four months of year end.
Worth knowing
If you only have time for part of it, read the management letter, the risk section and the auditor's report. A "qualified" audit opinion is a warning sign.
When the annual report can fool you
Upbeat tone: the text is written by the company, which wants to look good. The numbers matter more than the adjectives. The notes hide the details: lease debt, guarantees and lawsuits often appear only in the notes. Delay: the annual report comes out a few months after year end; in the meantime, quarterly reports are fresher.
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Questions about the annual report
Where do I find the annual report?
On the company's website, under "Investors" or "Investor relations". For US companies, also on the SEC website (form 10-K).
What does a qualified audit opinion mean?
That the auditor disagrees with part of the figures or could not check them. It does not automatically mean fraud, but it is worth reading why.
These explanations are for information only. They are not a recommendation to buy or sell.
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