An annual report is a comprehensive document that provides shareholders and other stakeholders with a detailed overview of a company's financial performance, operations, and achievements over the past year. It typically includes financial statements, management's discussion and analysis, corporate governance information, and future outlook. Annual reports are essential for transparency, accountability, and informed decision-making by investors and interested parties.
Annual reports provide a snapshot of a company's financial health, including revenue, expenses, profitability, and cash flow. Additionally, they provide details on the company's governance structure, board composition, executive compensation, and risk management practices. Understanding a company's financial performance and internal practices helps investors assess the company's stability and growth potential.
Annual reports fulfill legal and regulatory obligations, ensuring that the company meets reporting standards and provides accurate and timely information to shareholders and regulatory authorities. Additional information like auditor's reports, notes to financial statements, and sustainability or CSR reports may be included, providing a comprehensive view of what's happening at the company.