How To Read A Company’s Annual 10-K Report Like A Pro?

If you’re a serious investor, you need to review a company’s Form 10-K.

Getting your hands on the 10-K

Figure 1: Downloading 10-K from SEC’s website (Source: https://www.sec.gov/edgar/searchedgar/companysearch.html?)
Figure 2: Downloading 10-K from company’s website (Source: https://www.coca-colacompany.com/investors/investors-info-sec-filings)

How to Tackle a Massive Annual Report?

Remember: As an investor, understanding the specifics of a company’s business model is critical.

Remember: Ignoring the risk factors in companies’ 10-Ks can be a big mistake.

Tip: Make sure this part of the 10-K is blank. It is a huge red flag if the SEC disagrees with a company’s accounting and you should probably find another company stock to invest in.

Tip: When you see the word “challenging” in the MD&A language, that’s an indication that you need to dig deeper.

Scrutinizing the Footnotes

Examining What the Auditor’s Opinion Means For You as an Investor

Summary

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