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