Question

In: Accounting

Where to find a companies Operating Profit on form 10-K and what is it communicating?

Where to find a companies Operating Profit on form 10-K and what is it communicating?

Solutions

Expert Solution

Operating margin is the profit a company makes on a dollar of sales after paying for variable costs but before paying any interest or taxes. To calculate the operating margin, divide operating income (earnings) by sales (revenues).

To find a particular company's Form 10-K filings, use the Company Search for the SEC's EDGAR database. On the returned listing of filings for the company, enter “10-K” in the Filing Type box near the top of the page to filter for only Forms 10-K that have been filed.

Often, the most essential components of the annual 10-K filing include:

Item 1: Business (a description of the company's operation)

Item 1A: Risk Factors.

Item 3: Legal Proceedings.

Item 6: Selected Financial Data.

Item 7: Management's Discussion and Analysis of the Financial Condition.

The federal securities laws require public companies to disclose information on an ongoing basis. ... The annual report on Form 10-K provides a comprehensive overview of the company's business and financial condition and includes audited financial statements


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