annual report investment & finance definition

Once a year, public companies summarize their financial results, outline their competitive accomplishments, and outline the various areas of their business and product lines to shareholders. Typically, financial results will go back over a multi-year period. The annual report is mailed to all shareholders. Formats of the annual report vary depending on the financial health of the company. For instance, companies that are losing money may produce a plain report on white paper with black ink that is relatively inexpensive to print. Other companies that are established and profitable are likely to produce magazine-quality reports with lots of design elements, photography, and the use of color throughout.