Publicly traded businesses or any U.S.-based registered companies are required to report comprehensive information about their overall performance and activities annually through form 10-K. The 10-K form contents and details are available in Section 13 of the Exchange Act set up in 1934. In this post, we explain the role of a 10-K form and how you can use this financial filing document as a gauge for performing due diligence on your company.
The 10-K form is as important as the annual report or financial statement that accompanies it. It explains what a public company did in the previous year, what it expects to do in the current year, and what actions it may take in the future to meet financial obligations.
Companies rely on their shareholders to read the SEC 10-K form because it is the ultimate source of truth about their financial health. It is where the auditors obtain instructions to report material events that have occurred during the year.
It requires the agreement of both parties — investors and management — to include specific information in the report. The 10K form is the annual report of all publicly held companies in the U.S. It must be filed with the U.S. Securities and Exchange Commission (SEC) within 90 days after the fiscal year and contains financial statements and management discussion and analysis.
The 10k analysis provides investors with a detailed look at a company's performance over time, such as revenues, earnings per share (EPS), cash profit, and market share.
Securities and Exchange Commission (SEC) 's continuous disclosure requirements aim at providing current, accurate, and timely information to the marketplace so investors can make informed investment decisions.
SEC achieves this by requiring companies to file their annual report on Form 10-K within 40 days after the end of its fiscal year. These reports are essential because they give an investor a range of information about a company, including the number of shares outstanding, financial statements, selected financial data for the last five years, recent changes in the company's management, risk factors of the business, etc.
Those unfamiliar with the annual 10-K filing from a company's annual report may feel a bit overwhelmed in reading a 10k. However, with practice, 10-K filings can become somewhat easier to read.
There are two versions of the 10-K. The first is that of a small business, which follows Form S-1. For larger companies having more than $75 million in assets, Form 1-A is applicable. Each version of the form has five sections that must be read carefully by investors and interested people.
The 10K form contains five distinct sections: business, risk factors, financial data, management's discussion and analysis (MD&A), and Financial statements and supplementary data. Filling out 10K forms is a stressful task- there is certainly an easier way. You can use a platform like Docsumo to help on how to read 10k and turn it into a time-saving method.
With Docsumo, you can use form extraction to automatically extract data from the most critical sections of a 10K without manually entering or copying-paste anything. Has data extraction become a repetitive and time-consuming task? Do you want to use existing tools but haven't found one that fits your needs? Would you like to save dozens of hours and keep only the most valuable data in a complete structured database? Docsumo can help.
We provide easy-to-use, functional and robust software tools that you can use to extract SEC filing data. The software extracts every available balance sheet figure and income statement detail – automatically. The result is professional formatted financial statements in a fraction of the time and cost it would take you without Docsumo.
It isn't easy to manually download, upload, and edit fields data from the SEC 10-K documents. It can take hours to download/upload the files, manually review and make corrections in Excel before uploading them back into SEC's database to get extracted.
The manual process is prone to mistakes such as missed fields, duplicates and other data problems. Docsumo manages this entire process quickly and efficiently by automating it. Also, using Docsumo allows you to download a zip file with all 10-K documents daily rather than one document, which saves a lot of time.
There are numerous benefits of form 10K data extraction:
In today’s dynamic business world, filing and archiving official documents in the digital form makes it handy, and works wonders in the future or in unforeseen circumstances.
Optical Character Recognition (OCR) is the technology to convert an image of text into machine-readable text. It is the underlying technology for various data extraction solutions including Intelligent Document Processing. However, OCR is not smart enough to figure out the context in a document - it works simply by distinguishing text pixels from the background and finding a pattern. This limitation could cause inaccuracy in captured data that could directly impact the output of your data extraction model.
Accounts payable is a key financial function for any business. Corporations can have thousands of suppliers; even for relatively smaller businesses, the number of suppliers could be in hundreds. All the invoices they receive from these suppliers come in multiple formats, layouts, and templates - some semi-structured, some unstructured. Therefore, firms expend time and resources to capture invoice information through manual data entry and verification of accounts payable. Manual data entry is not feasible in the long run, definitely not on a large scale. Before we talk about how intelligent invoicing solves the problems associated with manual invoicing, let’s discuss the challenges in much detail.
As most of an organization's information is available in an unstructured format, processing it requires an automated system that can handle documents with minimum human interaction. OCR is one such technology, but its scope is limited as it requires human interaction and is highly dependent on the layout and structure of the document to be processed.These limitations are overcome by Intelligent Data Extraction.Using artificial intelligence, the Intelligent Data Extraction technology extracts data from documents and transforms it into useful information through the extraction process. It functions as a singular tool for extracting information from any type of document and aids in optimizing company operations.