Annual Report
A company yearly financial disclosure used to judge its fundamentals and earnings quality.
An annual report is a company yearly financial disclosure, the core document for fundamental analysis.
An annual report is a company official yearly disclosure of its financial statements, strategy and risks. It is the primary document fundamental analysts read to judge whether a business is improving or deteriorating. For index and equity traders it is a scheduled event that can move the stock sharply when released.
How It Works
- It is published once a year for shareholders
- It contains income, balance sheet and cash flow
- It is a scheduled catalyst for the stock
Trading Tips
Read it for earnings quality, not just headline profit
Compare this year report to the prior one
Time entries around the release date
Annual Report Example
Say a retailer annual report shows revenue up 12% but inventory up 40% with a cautious outlook. The stock drops 8% next morning despite record sales: the report buried the future in the footnotes, and readers found it.
How Traders Use Annual Report
Read reports backwards: risks and outlook first, headlines last. Compare inventory, debt and cash flow against prior years, not just revenue. One annual report read properly beats ten earnings-call soundbites.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.