An annual report is a comprehensive document that provides a summary of a company’s financial and operational performance over the previous year. Annual reports are typically prepared by public companies and are distributed to shareholders and other stakeholders to provide transparency and accountability.
An annual report typically includes the following sections:
Letter to shareholders: A message from the company’s CEO or other top executives that provides an overview of the company’s performance and highlights key achievements and challenges.
Financial highlights: A summary of the company’s financial performance, including revenue, net income, earnings per share, and other key financial metrics.
Management’s discussion and analysis (MD&A): A detailed analysis of the company’s financial performance, including an explanation of trends and factors that impacted performance, risks and uncertainties facing the company, and management’s plans for the future.
Corporate governance: Information on the company’s management structure, board of directors, and corporate governance policies.
Financial statements: The company’s audited financial statements, including balance sheets, income statements, and cash flow statements
Annual reports are important for investors and other stakeholders as they provide a comprehensive view of a company’s financial and operational performance and can help investors make informed decisions about investing in the company.
