Annual Report

The annual report is a company's main formal communication to shareholders and other stakeholders. Listed companies are generally required to publish one, and many private companies produce them too.

A typical annual report includes a letter from the chair or chief executive; a review of the business and its strategy; an analysis of financial performance by management; information on risks; reports on governance, board members and executive pay; often sustainability or ESG information; the full audited financial statements with notes; and the auditor's report.

For example, an investor reading a company's annual report could learn how revenue grew in each region, what risks management sees ahead, how much the chief executive was paid and what the auditor concluded.

The exact contents depend on local laws and stock exchange rules. In the United States, listed companies file a detailed annual report with the securities regulator on a standard form, and many also produce a more readable glossy version for shareholders.

Annual reports are a key source for analysts and investors. The financial statements and notes provide the hard numbers, while the narrative sections explain management's view of the business.