What is a '10-K Wrap'

A 10-K wrap is a summary report of a company's annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders and business overview among other topics. The 10-K wrap is often released instead of a traditional annual report and generally contains fewer images and comments from management.

BREAKING DOWN '10-K Wrap'

The biggest difference between the traditional annual report and the 10-K wrap is the way in which the information is presented and how much additional information is included above the required 10-K information. The traditional annual report has a greater focus on comments from the company and the document includes more images and graphs to communicate performance and corporate objective.

By contrast, the 10-K wrap is essentially the 10-K filed with the SEC along with some additional editorial from the company — but not nearly as much as the annual report. It usually has a lower production cost because it is often printed on lower-quality paper.

Elements of a 10-K Wrap

The basic elements of a 10-K wrap typically include a summary of the company’s financial results for the previous year, and a summary of its plans for upcoming quarters, including spending and debt level forecasts. A 10-K plan can also include an elaborate cover design, with perhaps a theme that focuses investors and analysts on the company’s plans for the upcoming year.

Graphics in the 10-K wrap will usually provide a brief overview of the company’s financials, including revenue, net profit, costs, income and any highlights from the previous year. The graphics may also outline the company’s geographical reach or other elements of growth.

As the 10-K wrap has evolved, it has come to include more images and content, such as a shareholder letter and high-quality photographs. However, the use of photographs will often be kept to a minimum, as the 10-K wrap document is usually no more than four pages long, and may be shorter. The 10-K wrap is typically made available in print and digital formats to maximize access for shareholders, investors and analysts.

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