As an investor, you NEED to know how to read an Annual Report.
Here's how to efficiently read and understand it ๐๐ผ
Here's how to efficiently read and understand it ๐๐ผ
For better understanding, we will use Appleโs Annual Report.
An Annual Report consists of 4 parts.
We will focus on the most important parts:
1. Business
2. Risk Factors
3. MD&A
4. Financial Statements (+Notes)
An Annual Report consists of 4 parts.
We will focus on the most important parts:
1. Business
2. Risk Factors
3. MD&A
4. Financial Statements (+Notes)
1. Business
The business section explains in simple terms what the firm offers and how it operates.
This should always be the first thing you read.
If youโre not interested in the business or donโt understand it, youโre already done.
Apple discusses the following topics:
The business section explains in simple terms what the firm offers and how it operates.
This should always be the first thing you read.
If youโre not interested in the business or donโt understand it, youโre already done.
Apple discusses the following topics:
2. Risk Factors
This section is critical to your analysis.
It discusses all important risks the business faces.
Itโs a great place to start with your own assessment of the risks that investment could add to your portfolio.
These are the topics discussed:
This section is critical to your analysis.
It discusses all important risks the business faces.
Itโs a great place to start with your own assessment of the risks that investment could add to your portfolio.
These are the topics discussed:
3. MD&A
This section might be the most interesting one.
The management discusses the latest financials.
They talk margins, external/internal factors on profitability and break down financials by product or region.
It makes sense to compare this section to previous 10-Ks.
This section might be the most interesting one.
The management discusses the latest financials.
They talk margins, external/internal factors on profitability and break down financials by product or region.
It makes sense to compare this section to previous 10-Ks.
4. Financial Statements (+Notes)
I wonโt discuss the financial statements here. I already wrote threads about them.
Here we focus on the notes.
They are a great resource for extra information.
Reading them will answer most of your remaining questions regarding the statements.
I wonโt discuss the financial statements here. I already wrote threads about them.
Here we focus on the notes.
They are a great resource for extra information.
Reading them will answer most of your remaining questions regarding the statements.
They discuss:
- Accounting Policies
- Financial Instruments
- Accounts Receivable
- Leases
etc.
Generally, they help you to dig deeper and understand the details of the financials.
General Note: this is a quick way to get value from an Annual Report, not the most thorough way.
- Accounting Policies
- Financial Instruments
- Accounts Receivable
- Leases
etc.
Generally, they help you to dig deeper and understand the details of the financials.
General Note: this is a quick way to get value from an Annual Report, not the most thorough way.
Other Great Resources:
One of the tools I use to track investments and get reports and documents is Tikr.
Tikr is a stock terminal where you can track and analyze your investments.
It also provides all important documents of a company.
tikr.com
One of the tools I use to track investments and get reports and documents is Tikr.
Tikr is a stock terminal where you can track and analyze your investments.
It also provides all important documents of a company.
tikr.com
If you're interested in investing in individual stocks, such a terminal will help you a lot.
If you want to try it and use the link above, you also support me since it's an affiliate link. Of course, there are no additional costs for you.
If you want to try it and use the link above, you also support me since it's an affiliate link. Of course, there are no additional costs for you.
That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
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