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10-Q vs. 10-K vs. Annual Report: What Are the Differences?

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When you're analyzing a company to determine what you think it is worth, you must get your hands on its  balance sheet . This report is usually located in the firm's latest annual report, Form 10-K filing, and Form 10-Q filing. Each document serves a different purpose and offers other insights into the business.

What Are the Differences Among a 10-Q, a 10-K, and an Annual Report?

The 10-Q, 10-K, and annual report all provide you with a view of a company's financial health. They must be filed on schedule with the U.S. Securities and Exchange Commission (SEC). Here are the key aspects of each report:

• Filing frequency: A 10-Q is filed quarterly with the SEC following the first three quarters of the year. The 10-K and annual report come once a year after the end of the fiscal year.
• Level of detail: While the 10-Q provides a quick, unaudited view of the company's financial information, the 10-K delves deep into every aspect of the company's situation and is based on audited data. The annual report offers a polished, summary look at what's in the 10-K.
• Due date: Due dates for 10-Qs range from 40 to 45 days after the close of the quarter. Annual reports and 10-Ks are filed together 60 to 90 days after the end of the fiscal year, depending on the company's size.

Let's look at each form and its purpose in greater depth so that you can gain a better grasp of their functions.

The 10-Q is like the 10-K, but it covers only a quarter's worth of financial data. It contains much less detail than the 10-K, due to the short measurement period. It can be very useful from time to time if you're looking for short-term changes in a company. 

The Form 10-Q can give insight into changes within a business, long before those changes show up in the earnings figures. For instance, you might see that inventory turnover is getting better (or worse) or that accounts receivable turnover is improving. You might even see warning signs that there is a credit problem with customers, because collections are slow. Changes in working capital , lawsuits, and other legal risks might be mentioned for which cash reserves haven't been built yet.

The size of a company's public float, which is the value of its common shares not held by its affiliates, determines how much time a company has to file its 10-K or 10-Q.

The Form 10-K  is an annual filing that publicly traded companies must submit to the SEC following the close of their fiscal year. 

The 10-K is an annual report, but it looks and reads nothing like the annual report. Instead, it has all the data from the year that can take you days to go through. It covers everything from the geographic source of revenue to the maturity schedule of bonds the company has issued. There are no pictures or flowery letters from the CEO: just the facts, figures, and decisions made. The 10-K also discusses any accounting procedures the company uses in addition to any that are required by law.

Some people find the 10-K to be a dreadful read. If you love finance and enjoy crunching numbers, though, it is invaluable. Truly complex businesses may have 10-Ks that are hundreds of pages long.

Sometimes, you may run into a company with no financial statements or other disclosures in the Form 10-K. Instead, it might have a passage that reads along the lines of "incorporated herein by reference." This means that the information has been released elsewhere, such as in the annual report, and you should look there for the data you need.

Annual Report

A publicly traded company releases the annual report to shareholders several months after the end of their fiscal year. It includes almost everything you need to know about the firm. This may be more distinct than the annual report filed with form 10-K to the SEC.

The annual report is sent to shareholders before the company's annual meeting. It also must be posted on the company's website.

An annual report usually contains a letter from the CEO that talks about the performance of the company. It usually lines up their expectations for the upcoming year and reiterate the vision and philosophies. Tucked away in the back of most annual reports is a collection of documents, footnotes, charts, and reports that you would be wise to read as they can help you build a true picture of the firm.

You should be able to access a firm's annual report, even if you're not a shareholder. Click on the investor relations link on the company's website. From there, you should be able to download the report in PDF form.

A publicly traded company must also file a Form 8-K to inform the SEC and shareholders of any event that could affect the stock price.

You can access a firm's financial data from portals such as MarketWatch or Yahoo! Finance, but it's better to go directly to the company report itself, because errors can creep into data that's been carried over to third parties.

The data you access on these sites is too limited in scope. You can't build any context or know what's going on by looking at a firm's beta, stock price, and price history. It's important to read the annual report, 10-K, or 10-Q yourself, because there are all sorts of things that might not be included in these websites. 

Think about AIG before the Great Recession of 2008 an 2009. The company received a huge government bailout after losing billions after the crisis. If you had carefully read the annual report, you would have been terrified by the exposure to subprime mortgage derivatives and swaps. This didn't show up on the financial sites; all you could see were booming net income, growing assets, and expanding cash flow.

You must never forget that with a stock, you are buying ownership in a business. You're lending money to a business if you're a bond investor . 

There are no shortcuts. You have to do the work and understand the risk you are taking to collect the dividends and interest payments.

Comparing 10-Qs, 10-Ks, and Reports Across Competitors

These forms are very useful when comparing firms. Be sure to request the annual reports, 10-Ks, and 10-Qs of a company's competitors if you want to understand its strengths and weaknesses. For example, it can help you understand an oil major better if you are studying all of the oil majors at the same time. You can analyze the statements and ask yourself, "What's different?" 

You'll find that firms might have different capital structures . You might look at the DuPont ROE variables and see what is driving returns. You could also gain insight into which firms will come out on top by looking at indicators like the trend in sales per square foot and  interest coverage ratios .

If one business explains a new accounting rule that will greatly change how it reports results, and another only glosses over it, you should hear the warning bells in your mind about the latter firm. Likewise, one company may point out an opportunity the industry faces, while a more conservative firm doesn't report on anything other than their results during the latest period. The former company would seem to be the better investment at that time, because you have more information.

If you plan to invest in stocks or bonds, learning to read and evaluate 10-Qs, 10-Ks, and annual reports is a vital skill to cultivate. Informed investors are successful investors; don't skip reviewing these important documents when they come out.

Key Takeaways

• Form 10-Q filings are filed quarterly and contain much less detail than 10-K filings.
• Form 10-K filings are annual reports filed with the U.S. Securities and Exchange Commission and contain mountains of financial data.
• Annual reports are sent to shareholders once a year and usually include almost everything you need to know about the business.
• You can obtain copies of these reports from financial websites, but it's best to get them directly from the company.

Securities and Exchange Commission. " Form 10-Q ."

U.S. Securities and Exchange Commission. " Form 10-K ."

U.S. Securities and Exchange Commission. " Annual Report ."

Thought Leadership  •  April 05, 2021

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What Is A 10-Q Filing?

You may know that companies need to file quarterly financial statements with the Securities and Exchange Commission (SEC), but there's more to the process than just crunching  numbers. Companies must also compare the current quarterly statement with previous versions to unpack the larger financial picture for investors and regulators. Read on to discover 10-Q reporting requirements, including who needs to file and why. Plus, learn how DFIN can help your company with all SEC filings, including Form 10-Q.

What is Form 10-Q?

Form 10-Q compares the current financial quarter to the one preceding it. It resembles a streamlined version of the 10-K, which is the annual financial analysis. Generally, there is less information reported on the 10-Q. Additionally, companies don't need to have an auditor verify their financial statements the way they do with the 10-K. However, companies do need to prepare a 10-Q three times per year (the fourth quarter is when the 10-K is filed). To add context to the quarterly numbers, companies will also discuss any unusual circumstances or interesting datapoints that might explain a better or worse performance.

There is also room for an analysis from management regarding the company's financials. The 10-K requires this sort of discussion from management, but where companies are expected to talk at length within the 10-K, they can be far more succinct within the quarterly scope of the 10-Q filing.

It's worth noting that management's discussion should be framed through the eyes of an investor. What would an investor need to know when looking at the numbers? What context is missing that brings the data into focus? What do the previous and current quarter's financials say about future performance of the business, so that investors can maintain confidence? Answering these questions should help you formulate the detailed managerial analysis required by the SEC.

In the next section of the Form 10-Q, companies enter information about any market risks. The SEC asks specifically about risk because, generally speaking, companies that understand and manage risks do better than those unaware of external risks in the market. In this section of the Form 10-Q, companies discuss market risk related to activities such as:

• Sector volatility
• Market pricing trends
• Market liquidity
• Trading and investment decisions
• Business lending
• Capital investments

The final section of the Form 10-Q addresses a concept called internal control. Within this section, company management must indicate that they assume responsibility for internal financial reporting. In other words, they confirm that they are running the reports that need to be run, drawing conclusions from the numbers and acting in the best interest of the company. Managers also discuss the evaluation framework they use to determine whether there is sufficient internal control over financial reports. They then affirm that their internal control is effective or, if a weakness is identified, explain the weakness at greater length. If internal control mechanisms changed at any point over the quarter, such that it would affect financial reporting, it must be disclosed as well.

10-Q Filing Requirements

Any publicly traded company must file the Form 10-Q, along with the Form 10-K and other required filings. The SEC gives two timeframes for filing: Large accelerated and accelerated filers with a float exceeding $700 million need to submit Form 10-Q within forty days of the quarter's end. All other companies have 45 days to submit this form. If you're unfamiliar with the term, “float” references the amount of company shares held by the general public rather than owners or officers. Thus, if the value of publicly owned shares exceeds $700 million, the company must file within the 40-day timeframe.

Why does the SEC require the Form 10-Q, given that companies are already reporting their financial performance at year's end? Form 10-Q makes it easier for interested parties to evaluate the company's financial health by quickly focusing in on the major trends from the quarter. The statement contextualizes weak performance, so investors better understand why a company underperformed. It credits strong performance to underlying factors or tailwinds, which can build faith in continued high performance.

Investors review Form 10-Q along with the quarterly statements to make decisions about how to allocate their resources. An investor can always go deeper with the reports if he or she wishes, but the 10-Q is designed to provide the basic information needed to enable quarter-over-quarter comparison.

DFIN Software Makes Filing 10-Q Financial Statements Easier

At DFIN, we have systems that streamline the SEC reporting process to better assist companies with managing the complexities of filing. Our signature product, ActiveDisclosure ℠ , is an easier, collaborative filing tool for the 10-Q and other SEC financial reports.

Unlike other software, ActiveDisclosure ℠ allows you to integrate data from a single source of truth, rather than cobbling together a report based on data from email, spreadsheets, websites and other sources. ActiveDisclosure ℠ includes guided workflows that help you loop core stakeholders into the process and communicate seamlessly in-platform to reduce time delays and communication gaps often associated with complex financial reporting.

Make SEC 10-Q filings easier to generate while decreasing time spent on the process. Enjoy 24/7/365 expert support and document reviews from financial professionals. Try ActiveDisclosure ℠ from DFIN to experience a better way to meet your financial reporting obligations.

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8-ks, 10-qs and 10-ks: how investors use sec filings.

Shareholders of public companies have a legal right to material information and news about what’s going on inside the company. Since shareholders can’t attend management meetings or daily company briefings, companies must disclose this information by filing a number of mandated documents with the SEC.

All of these documents are publicly available to shareholders, and they often serve as catalysts for stocks.

Here’s a look at three specific types of filings that traders watch for.

A 10-Q filing is a company’s quarterly financial report. When traders refer to a company’s “earnings date” or “earnings report,” they are most often referring to the company’s 10-Q filing. The 10-Q report contains information such as a company’s income, its revenue and its debt levels, and it must be filed within 35 days of the end of each quarter.

Related Link: The Ins And Outs Of Dividend Capture Strategy

A 10-K filing is a company’s annual financial report. A 10-K filing is like a 10-Q on steroids and is typically a much more in-depth report on the business. In addition to all of the standard metrics contained in a 10-Q report, 10-K reports often contain executive compensation figures, audited financial statements, updates about specific business segments or initiatives and commentary on the outlook for the company in the quarters ahead.

Finally, an 8-K filing is a “real-time” report on any important changes that impact the company. Public companies must inform shareholders immediately of “unscheduled material events that are important to shareholders,” and they do so by disclosing them via 8-K filings. Common unplanned events include business deals, employee layoffs, lawsuits, store or factory closings and bankruptcy filings. It’s common for companies to file a number of 8-K forms throughout a given quarter.

Investors can search and monitor all SEC filings on the SEC website .

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SEC Form NT 10-Q: What it is, How it Works, Market Impact

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

What Is SEC Form NT 10-Q?

SEC Form NT 10-Q is a Securities and Exchange Commission (SEC) filing required for companies that will not be able to submit their 10-Q filing (for quarterly financial results) by the SEC deadline or in a timely manner. Mandated by SEC rule 12b-25 , Form NT 10-Q requires the registrant's information and explanation of the reason for why the 10-Q is delayed. The form also allows companies to apply for relief from the deadline.

Key Takeaways

• SEC Form NT 10-Q is a required notification of a firm's inability to file Form 10-Q or 10-QSB in a timely manner.
• Form 10-Q is, in turn, a comprehensive report of a company's performance that must be submitted quarterly by all public companies to the SEC.
• Investors and analysts may take note of a company's late filings as a red flag warning about underlying accounting issues or poor financial management.

Understanding SEC Form NT 10-Q

SEC Form NT 10-Q is required to be filed within 45 days following the end of each of a company's first three fiscal quarters. If the 10-Q cannot be filed in a timely manner, the company must file a Form 10-QT with the commission.

A very common reason for an NT 10-Q is a merger or acquisition , which prevents results from being incorporated in time for the filing. The SEC provides for "unreasonable effort and expense," with a suitable explanation, as part of the application for relief. Late filings may also be because of uncertainty surrounding litigation, due to a company’s auditor not having yet completed its review of the company’s operations, a sign of a company in financial distress, or because a company emerging from bankruptcy needs more time to complete the required disclosures.

The Market Impact of Form NT 10-Q Filings

Late financial report filings, whether of 10-Qs or other documents, especially 10-Ks, can be red flags to analysts following a company, as well as its regulators, investors, and lenders. While the reasons vary, companies who list accounting issues or unexpected changes in accounting or auditor firms (particularly if these involve disagreements over accounting principles or resignations of auditors) as the reason for the delay typically face much more scrutiny of their late filings.

A study conducted by professors Eli Bartov, of New York University’s Stern Business School , and Yaniv Konchitchki, of the University of California at Berkeley, and published in December 2017, looked at financial market reactions to companies with late filings. The authors found several impacts including that “(a) delayed quarterly filings have distinctly different effects on firm value than do delayed annual filings, (b) investors do not accept at face value management assertions about the expected filing date, (c) accounting problems play a unique role in communicating the seriousness of the delay, and (d) delayed announcements tend to be followed by continued poor operating and stock price performance.”  

NYU Stern. " Late Financial Filings Come at a Cost ." Accessed February 27, 2021.

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7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account

I f you plan to deposit $10,000 or more into your checking account , there are a few things you should consider first. By law, banks have to report deposits that exceed a certain amount.

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Not only that, but many bank accounts come with maximum deposit restrictions. You may also be subject to certain fees when making such a large deposit. If you frequently make large deposits, you should also watch out for any potential scams or fraudulent activity.

But even if this is a one-time thing, it’s still important to know about these factors and how they might affect you .

Banks Must Report Large Deposits

“According to the Bank Secrecy Act, banks are required to file Currency Transaction Reports (CTR) for any cash deposits over $10,000,” said Lyle Solomon, principal attorney at Oak View Law Group . CTRs typically include the name of the individual, their account number, Social Security number and taxpayer identification number — all of which are verified and recorded by the bank.

Banks must file CTRs to the Financial Crimes Enforcement Network (FinCEN), which is part of the U.S. Department of the Treasury. Some banks will do this manually, while others will automate the process.

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“The creation of a CTR does not mean that your account will be frozen, nor that the Men in Black will be visiting your home,” said Herman (Tommy) Thompson Jr., CFP, ChSNC, ChFC certified financial planner at Innovative Financial Group . For banks, it’s considered standard procedure and isn’t a cause for concern if the deposit is legitimate.

These procedures exist to help prevent money laundering, counterfeit deposits and similar financial crimes from occurring. By requiring banks to report deposits of $10,000 or more, the government can more easily keep track of monetary transactions. As long as your deposits are legitimate, you won’t have anything to worry about.

Structuring Is Illegal

Some people will try to avoid the federal cash-reporting rules by making smaller deposits that total $10,000 or more over a short period — say, a few days or weeks. This is known as “structuring” and is considered illegal. Structuring is essentially the “practice of conducting financial transactions in a specific pattern calculated to avoid the creation of certain records and reports, according to the IRS,” said Solomon.

Sean K. August, CEO of The August Wealth Management Group, added to this by saying that “depositing $8,000 in an attempt to avoid the $10,000 AML (Anti-Money Laundering) limit is a form of structuring, which is also illegal. If the bank suspects that you are trying to avoid the $10,000 limit by making multiple deposits of less than $10,000, they may still report the transaction to FinCEN, and you may face penalties and legal consequences.”

If you make multiple smaller deposits to avoid a CTR, your bank could file a Suspicious Activity Report (SAR). Once received, FinCEN will investigate the activity to determine whether your account is involved in any fraud, money laundering or terrorist funding. Your bank is not required to notify you of this.

You May Need To Provide Additional Documentation

“You may be asked to provide additional information about the source of the funds, such as invoices, receipts, or other documentation,” August said. Providing this information can also help the government identify potential red flags, such as illegal or fraudulent activity. It’s a good idea to keep records of any transactions over $10,000 for tax-related reasons.

Businesses Must File Form 8300

By law, individuals, businesses and trades must file Form 8300 to the IRS within 15 days of receiving a cash sum of $10,000 or more. This form is meant to help prevent money laundering.

Everyone involved in the transaction will also need to provide a written statement to be filed along with Form 8300. If you are required to file but do not, you may face criminal or civil penalties.

Your Bank Account May Have Limits

Certain bank accounts come with a maximum deposit limit. Each institution has its own rules on this. For example, some banks might have different limitations based on if the deposit was done by cash or check.

Verify with your bank that you can deposit $10,000 or more into your account. “Depending on your bank and the specific amount you have, you may be charged fees or penalties for making large deposits,” Solomon said. Review your account’s terms and conditions or ask your bank about potential fees before depositing the money.

Not All Bank Accounts Are Secured

If you’re planning to deposit large sums of money into a bank account, make sure it’s secured. Any bank you use should be FDIC-insured. This means the money in your accounts — checking, savings, money market, etc. — is automatically protected up to a certain amount (usually $250,000 or more) against bank failure. While the FDIC does not insure financial losses caused by fraud or theft, your bank should have other safeguards in place to secure your money.

Watch Out for Scams and Fraud

Unfortunately, scams and fraudulent activity are rather common when dealing with large sums of money. “Always verify the legitimacy of the transaction and the source of the funds before depositing the money,” August said.

There are several common types of scams out there. Confirm where the money is coming from, especially if it’s in a large amount. “If the source of the funds is unclear or suspicious, be careful,” Solomon said. “For example, if someone offers to pay you a large sum of money for a service or product, or if you receive an unexpected windfall from an unknown source, it’s important to be cautious and investigate the situation further.”

If you receive a check, make sure it’s legitimate as well. Some scammers will send a check for you to deposit and ask you to send back some of that money. By the time either you or the bank realizes it was a fraudulent check, it’s often too late and your money’s already gone.

Availability of Funds

After depositing a large amount of money, it’s natural to want to know when you’ll have access to it. This depends on the deposit type and the bank’s policies.

“Large transactions usually have a hold period of two to seven days to verify the authenticity of the check and the ability of the payor to meet the obligation,” Thompson said. “A bank can make the hold longer under special circumstances, but that is fairly rare.”

Cash deposits might be available more quickly. Checks, meanwhile, might take several days to clear and for the funds to show up in your bank account. When in doubt, contact your bank and ask when the money will be available.

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This article originally appeared on GOBankingRates.com : 7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account

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First-Time Home Buyer Affordability Report – Q1 2024

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At a time of year when home prices are generally at their lowest, the long-term financial goal of homeownership likely stayed out of reach for many would-be first-time buyers in the first quarter.

The past several years have seen dramatic home price growth paired with — and largely due to — a low supply of homes for sale. These conditions, along with high mortgage rates, sustained an unwelcoming market for would-be buyers at the beginning of 2024. And among those buyers, first-timers likely felt it the most.

People purchasing a home for the first time generally have lower down payments than repeat buyers, who may have equity in an existing home working in their favor. First-timers may also have lower incomes and less robust credit history, which can work against them in qualifying for the lowest available rates.

When homes become less affordable across the nation — whether through higher prices, higher interest rates or both — it’s often first-timers who are most affected. Indeed, first-time buyers made up just 26% of all home buyers in 2023, according to the National Association of Realtors. This is a decrease from 34% the year before and the lowest on record.

In the first quarter, prices didn’t rise, but they also didn’t come down. Inventory remained low and mortgage rates high. These continued conditions meant little relief in a tight housing market.

Affordability challenges in the cheapest homebuying season

Generally, the first quarter of the year sees the lowest home prices . Demand is low — fewer people buy during the coldest months. In 2024, while prices didn’t grow in the first quarter, home prices across the country remained very high for potential first-time buyers.

Homes were listed at prices five times the potential first-time buyer income in the first quarter, on average. Looking at homes priced around three times your annual income is an old rule of thumb used to help people gauge affordability. Under this guidance, some metros remained easier targets than others for first-timers.

Among the more affordable areas in the first quarter were Pittsburgh, where homes were listed at 2.8 times potential first-time buyer income, Detroit (2.9), Cleveland (3.0), Buffalo (3.2) and Baltimore (3.4). At the other end of the spectrum was Los Angeles, where homes were listed at 12 times first-time buyer income, San Diego (9.3), San Jose (7.7), New York City (7.1) and Boston and Miami, both 7.0.

Though prices were relatively unchanged from the last quarter of 2023, across the nation, they fell very slightly when compared to the first quarter of last year. In two metro areas, Miami and Oklahoma City, prices fell 10% year over year, after accounting for inflation. By contrast, they rose double digits in Richmond (11%), Pittsburgh (11%) and Los Angeles (13%).

First-time buyer tip: Home prices are largely driven by inventory. The number of homes available for sale is paltry, though it rose 15% from the first quarter of last year. If you’re shopping for your first home, keep in mind that buying in this market may mean making sacrifices beyond a high sticker price — you may not find a home that hits all (or even most) of the items on your wish list. Go into the shopping experience knowing what you’re willing to compromise on and where you draw your line to help ensure you don’t end up closing on a pricey home you’re not entirely happy about.

Mortgage rates continue to play an outsized role

Rates on 30-year fixed mortgages have risen from below 3% in 2020 and 2021 to around 7%, on average. In the first quarter of the year, there was brief and subtle respite as rates fell from over 7% to just below. But even this rate is more than twice what people faced when they purchased during the pandemic.

These higher rates play a significant role in affordability, particularly for first-time buyers or those with less room in their budgets. The change in rates from 2020 to 2024 translates to an additional $800 on the monthly payment of an average-priced home and several hundred thousand dollars in additional interest over the life of a 30-year loan.

Home buyer tip: If you’re considering waiting out the high rates, temper your expectations — rates may moderate toward the end of 2024, but they’re unlikely to go below 6%, according to the latest mortgage rate forecasts . You can use the time spent waiting for a less expensive mortgage to build a bigger down payment. Moderately lower rates and a larger down payment can make a considerable difference in the affordability of your monthly payments.

What constitutes affordability is shifting

The guideline that says an affordable home is one listed around three times your income may have originated decades ago when government officials promoting affordable housing and lenders used that ratio. But getting a rough idea of affordability by looking at homes listed at three times your income is most useful when homes are actually priced in that range. In other words, as home prices rise considerably and incomes don’t, such guidance makes an “affordable” home more elusive.

Looking at national averages, homes haven’t been selling for close to three times the typical income since 2011.

The three-times-income guidance isn’t meant to be the final say in whether you can afford a home, but rather a starting point. Affordability measures that account for expenses such as taxes and mortgage rates are a more precise gauge.

First-time home buyer tip: There’s no harm in estimating affordability when you’re looking at listings on your phone with a simple income-to-price ratio. Even if homes are priced four or five times your income where you’re looking, it starts to give you some sense of how far of a stretch the purchase might be. Be aware that much more goes into home buying and homeownership costs. A home affordability calculator can help you plan for the details, including your other debt obligations, down payment amount, mortgage insurance, interest rates and homeowners insurance.

Monthly median list price and list count figures are from monthly inventory data from the Realtor.com residential listings database as of May 1, 2024. All nominal list prices were adjusted to March 2024 dollars using the U.S. Bureau of Labor Statistics’ consumer price index. All monthly median figures were compiled into quarterly averages.

The median age of first-time home buyers is 35, according to the National Association of Realtors’ 2023 Profile of Home Buyers and Sellers. Estimated income for first-time home buyers was derived from the U.S. Census Bureau’s 2022 American Community Survey metro-level median household income for householders ages 25-44 — the range likely to include most first-time home buyers — and adjusted to March 2024 dollars using the Bureau of Labor Statistics’ Employment Cost Index.

Interpret metro rankings with caution. Due to margins of error in income data and rounding, there may be overlap in affordability ratios.

San Juan, Puerto Rico, is among the 50 most populous metros but was excluded from the analysis due to insufficient inventory data.

On a similar note...

Nvidia stock jumps after big earnings beat, 10-for-1 stock split announcement

• Nvidia stock jumped as much as 5% after it reported first-quarter earning results on Wednesday. 
• The company beat profit and revenue estimates thanks to continued strength in its GPU business.
• Nvidia boosted its dividend and announced a 10-for-1 stock split.

Nvidia stock surged to record highs in after-hours trading on Wednesday after the company reported its first-quarter earnings results.

Shares of the chip maker jumped as much as 5% to about $993 per share following its earnings release. The company reported a 262% surge in year-over-year revenues, driven by the continued success of its AI-enabled GPU chips, mainly the H100.

Here were the key numbers:

• Revenue: $26.04 billion, versus analyst estimates of $24.65 billion
• Data center revenue: $22.6 billion, representing a 427% surge from the year-ago quarter
• Adjusted earnings per share: $6.12, versus analyst estimates of $5.59

Nvidia also offered solid revenue guidance for the second quarter, at $28 billion versus analyst estimates of $26.61 billion, signaling that it expects continued strong sales even as customers await its next-generation GPU chip, Blackwell, set to be released in the second half of the year.

"We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI," Nvidia CEO Jensen Huang said. 

The company announced a 10-for-1 stock split, effective next month. It also increased its quarterly dividend by 150% from $0.04 to $0.10 per share. 

Analysts will be eagerly awaiting Huang's comments on the company's conference call, looking for potential direction as to where he sees the AI chip market going throughout the rest of the year and beyond. 

"Even in the face of huge expectations, the company once again stepped up and delivered. The always important data center revenue was strong, while future revenue was also impressive. Bottom line, the bar was high and cleared it once again," Carson Group's Ryan Detrick said. 

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How to Read a 10-K/10-Q

If you want to follow or invest in a U.S. public company, you can find a wealth of information in the company’s annual reports on Form 10-K and quarterly reports on Form 10-Q . Among other things, the 10-K and 10-Q offer a detailed picture of a company’s business, the risks it faces, and the operating and financial results for the fiscal year or quarter, as applicable. Company management also discusses its perspective on the business results and what is driving them.

Most U.S. public companies are required to file a 10-K each year with the U.S. Securities and Exchange Commission (SEC). (Non-U.S. public companies usually file their annual reports with the SEC on different forms.) SEC rules require that 10-Ks follow a set order of topics.  The Form 10-Q is required to be filed after the first, second and third fiscal quarter.

SEC rules also require companies to send an annual report to their shareholders when they are holding annual meetings to elect members of their boards of directors. There is a lot of overlap in the requirements for the 10-K and the annual report to shareholders, but there are also important differences. The 10-K typically includes more detailed information than the annual report to shareholders. The annual report to shareholders, unlike the 10-K, sometimes appears as a colorful, glossy publication. A number of companies, however, simply take their 10-K and send it as their annual report to shareholders. In those cases, the 10-K filed with the SEC and the annual report to shareholders are the same document.

The Roles of Companies and the SEC

The company prepares the 10-K and 10-Q and files it with the SEC. Laws and regulations prohibit companies from making materially false or misleading statements. Likewise, companies are prohibited from omitting material information that is needed to make the disclosure not misleading. In addition, a company’s CFO and CEO must certify to the accuracy of the 10-K and 10-Q.

The SEC does not vouch for the accuracy of a 10-K or 10-Q. The SEC sets the disclosure requirements – the topics that all companies must cover in their 10-Ks or 10-Qs, and how the information should be presented.

The SEC staff reviews 10-Ks and 10-Qs to monitor and enhance companies’ compliance with the requirements. Both the SEC and the staff also provide interpretive advice about the disclosure requirements. The SEC staff reviews 10-Ks and may provide comments to a company where disclosures appear to be inconsistent with the disclosure requirements or deficient in explanation or clarity. The Sarbanes Oxley Act requires the SEC to review every public company’s financial statements at least once every three years. The SEC staff may review the 10-Ks and 10-Qs of certain companies more frequently.

All 10-Ks and 10-Qs filed with the SEC are available to the public on the SEC’s EDGAR website. Most companies also post their 10-Ks and 10-Qs on their own websites.

Items in the Annual Report on Form 10-K

Item 1 “Business” requires a description of the company’s business, including its main products and services, what subsidiaries it owns, and what markets it operates in. This section may also include information about recent events, competition the company faces, regulations that apply to it, labor issues, special operating costs, or seasonal factors. This is a good place to start to understand how the company operates.

Item 1A “Risk Factors” includes information about the most significant risks that apply to the company or to its securities. Companies generally list the risk factors in order of their importance. In practice, this section focuses on the risks themselves, not how the company addresses those risks. Some risks may be true for the entire economy, some may apply only to the company’s industry sector or geographic region, and some may be unique to the company.

Item 1B “Unresolved Staff Comments” requires the company to explain certain comments it has received from the SEC staff on previously filed reports that have not been resolved after an extended period of time. Check here to see whether the SEC has raised any questions about the company’s statements that have not been resolved.

Item 2 “ Properties” includes information about the company’s significant physical properties, such as principal plants, mines and other materially important physical properties.

Item 3 “Legal Proceedings” requires the company to include information about significant pending lawsuits or other legal proceedings, other than ordinary litigation.

Item 4 ”Mine Safety Disclosures” requires disclosure, if applicable, of. Information concerning mine safety violations, among other things.

Item 5 “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” requires information about the company’s equity securities, including market information, the number of holders of the shares, dividends, stock repurchases by the company, and similar information.

Item 6 This item has no required information, but is reserved by the SEC for future rulemaking.  Prior to February 2021, however, this item was titled “Selected Financial Data” and  required summarized financial data about the company for the last five years.

Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” gives the company’s perspective on the business results of the past financial year. This section, known as the MD&A for short, allows company management to tell its story in its own words. The MD&A presents:

• The company’s operations and financial results, including information about the company’s liquidity and capital resources and any known trends or uncertainties that could materially affect the company’s results. This section may also discuss management’s views of key business risks and what it is doing to address them.
• Material changes in the company’s results compared to a prior period.
• Critical accounting judgments, such as estimates and assumptions. These accounting judgments – and any changes from previous years – can have a significant impact on the numbers in the financial statements, such as assets, costs, and net income.

Item 7A “Quantitative and Qualitative Disclosures about Market Risk” requires information about the company’s exposure to market risk, such as interest rate risk, foreign currency exchange risk, commodity price risk or equity price risk. The company may discuss how it manages its market risk exposures.

Item 8 “Financial Statements and Supplementary Data” requires the company’s audited financial statements. This includes the company’s income statement (which is sometimes called the statement of earnings or the statement of operations), balance sheets, statement of cash flows and statement of stockholders’ equity. The financial statements are accompanied by notes that explain the information presented in the financial statements.

U.S. companies are required to present their financial statements according to a set of accounting standards, conventions and rules known as Generally Accepted Accounting Principles, or GAAP. An independent accountant audits the company’s financial statements. For large companies, the independent accountant also reports on a company’s internal controls over financial reporting.

The auditor’s report is a key part of the 10-K. Most audit reports express an “unqualified opinion” that the financial statements fairly present the company’s financial position in conformity with GAAP. If, however, an auditor expresses a “qualified opinion” or a “disclaimer of opinion,” investors should look carefully at what kept the auditor from expressing an unqualified opinion. Likewise, investors should carefully evaluate material weaknesses disclosed on internal controls over financial reporting.

In addition, a company’s CEO and CFO must certify that the 10-K is both accurate and complete. These are called Sections 302 and 906 certifications, and you can usually find them in Exhibits 31 and 32.

You may also find “non-GAAP financial measures” in the 10-K. That means that the numbers do NOT conform to GAAP. While companies are permitted to present non-GAAP measures, they must also show how they differ from the most comparable corresponding GAAP financial measure. As an investor, it is up to you to decide how much weight to give to non-GAAP measures.

Item 9 “Changes in and Disagreements with Accountants on Accounting and Financial Disclosure” requires a company, if there has been a change in its accountants, to discuss any disagreements it had with those accountants. Many investors view this disclosure as a red flag.

Item 9A “Controls and Procedures” includes information about the company’s disclosure controls and procedures and its internal control over financial reporting.

Item 9B “Other Information” includes any information that was required to be reported on a Form 8-K during the fourth quarter of the year covered by the 10-K, but was not yet reported.

These items cover the following topics:

Item 10 “Directors, Executive Officers and Corporate Governance” requires information about the background and experience of the company’s directors and executive officers, the company’s code of ethics, and certain qualifications for directors and committees of the board of directors.

Item 11 “Executive Compensation” includes detailed disclosure about the company’s compensation policies and programs and how much compensation was paid to the top executive officers of the company in the past year.

Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” requires information about the shares owned by the company’s directors, officers and certain large shareholders, and about shares covered by equity compensation plans.

Item 13 “Certain Relationships and Related Transactions, and Director Independence” includes information about relationships and transactions between the company and its directors, officers and their family members. It also includes information about whether each director of the company is independent.

Item 14 “Principal Accountant Fees and Services” requires companies to disclose the fees they paid to their accounting firm for various types of services during the year. Although these disclosures are required by the 10-K, most companies meet this requirement by providing the information in a separate document called the proxy statement, which companies provide to their shareholders in connection with annual meetings. If the information is provided through the proxy statement, the 10-K would include a statement from the company that it is incorporating the information from the proxy statement by reference – in effect directing readers to go to the proxy statement document to find this information. Keep in mind that the proxy statement is typically filed a month or two after the 10-K.

Item 15 “Exhibits, Financial Statement Schedules” requires a list of the financial statements and exhibits included as part of the Form 10-K. Many exhibits are required, including documents such as the company’s bylaws, copies of its material contracts, and a list of the company’s subsidiaries.

Items in the Quarterly Report on Form 10-Q

The Form 10-Q provides similar but more abbreviated disclosure than the Form 10-K and as it relates to the applicable fiscal quarter.  There are fewer item disclosures than in the Form 10-K. 

The Form 10-Q includes items relating to “Financial Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk,” “Controls and Procedures,” “Legal Proceedings” and “Risk Factors.”  See the above discussion for a summary of the information disclosed in these items.

Additional Resources

Visit “ Using EDGAR to Research Investments ” to learn how to use our EDGAR system including to find a company’s Form 10-K.

For additional educational information for investors, see the SEC Office of Investor Education and Advocacy’s website for investors, Investor.gov .

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Top 10 healthcare IT deals in Q1

Healthcare IT venture capital deals remained flat in the first quarter of 2024, with the exception of a few large funding rounds, PitchBook reported .

Here are the 10 biggest deals in Q1, according to the May 30 report:

1. Abridge : $150 million (series C)

2. Reveleer : $65 million

3. Rad AI : $63 million (series B)

4. Fabric: $60 million (series A)

5. Hippocratic AI : $55 million (series A)

6. Cohere Health : $50 million (series C)

7. Artsight: $42 million (series B)

8. CodaMetrix : $40 million (series B)

9. HiLabs : $39 million (series B)

10. Amigo Tech: $32.7 million

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