Skip to content

10-Ks Questions

Common Questions in 10-Ks

Oftentimes, when analysts go through 10-Ks extracting information, there are key questions that they are looking to find the answers to. Here are some common questions of interest:

Business Operations:

  1. How does the company generate its revenue? What are its main products or services?
  2. Does the company operate in multiple geographic regions or industries?
  3. Are there any significant changes or developments in the company's business model, strategy, or competitive landscape?

Financial Performance:

  1. What were the company's revenues and net income for the past few years, and how have they changed over time?
  2. What are the major drivers of revenue and profit growth or decline?
  3. Are there any significant trends or patterns in the company's financial statements?

Management and Governance:

  1. Who are the company's key executives and board members? What is their experience and track record?
  2. Are there any related-party transactions or potential conflicts of interest?
  3. Does the company have effective internal controls and risk management procedures in place?

Financial Position:

  1. What is the company's overall financial health, including its liquidity, solvency, and capital structure?
  2. How much debt does the company have, and what are the terms and conditions?
  3. Are there any contingent liabilities or off-balance-sheet arrangements that could impact the company's financial position? -->

Risk Factors:

  1. What are the primary risks and uncertainties the company faces? How might they impact its future performance?
  2. Has the company identified any new risks or changed its risk profile since the previous filing?
  3. Are there any legal or regulatory issues that could affect the company's operations?

Future Outlook:

  1. What are the company's strategic priorities and growth prospects?
  2. Are there any anticipated changes in the industry or market conditions that could affect the company?
  3. What are management's expectations and guidance for future financial performance?

For a given 10-K for a specific company, this may be the following response from a LLM like GPT-3:

Query Response
How does the company generate its revenue? What are its main products or services? The Company generates its revenue by selling its products and services directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force. It also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers, and resellers. The Company's main products and services include cellular network carriers, wholesalers, retailers, resellers, and other products and services.
Does the company operate in multiple geographic regions or industries? Yes, the company operates in multiple geographic regions, including the Americas, Europe, Greater China, Japan, and Rest of Asia Pacific.
Are there any significant changes or developments in the company's business model, strategy, or competitive landscape? No, the context does not mention any significant changes or developments in the company's business model, strategy, or competitive landscape.
What were the company's revenues and net income for the past few years, and how have they changed over time? The company's revenues for 2022, 2021, and 2020 were $152,895 million, $137,006 million, and $91,240 million, respectively. The company's net income for 2022, 2021, and 2020 were $35,233 million, $32,505 million, and $22,170 million, respectively. The company's revenues and net income have increased over time.
What are the major drivers of revenue and profit growth or decline? The major drivers of revenue and profit growth or decline are net sales, cost of sales, operating expenses, product pricing, competition, and gross margins.
Are there any significant trends or patterns in the company's financial statements? No, the financial statements present fairly, in all material respects, the financial position of Apple Inc. at September 24, 2022, and September 25, 2021. There is no discussion of trends or patterns in the financial statements.
Who are the company's key executives and board members? What is their experience and track record? The key executives and board members of the company are Alex Gorsky, Andrea Jung, Arthur D. Levinson, Monica Lozano, Ronald D. Sugar, and Susan L. Wagner. They have experience in consulting, analytics, mission operations, technology, systems delivery, cybersecurity, engineering, and innovation expertise.
Are there any related-party transactions or potential conflicts of interest? It is not clear from the context if there are any related-party transactions or potential conflicts of interest.
Does the company have effective internal controls and risk management procedures in place? It is not possible to answer this question definitively based on the given context. The context indicates that the company has internal controls and risk management procedures in place, but it is not clear if they are effective.
What is the company's overall financial health, including its liquidity, solvency, and capital structure? It is difficult to say without more information. The context provided suggests that the company is exposed to a variety of risks that could affect its financial health, including changes in liquidity, credit deterioration, market and economic conditions, political risk, sovereign risk, and interest rate fluctuations. Additionally, the company has been adversely affected by the COVID-19 pandemic, which could have further impacts on its business, results of operations, financial condition, and stock price.
How much debt does the company have, and what are the terms and conditions? The company has outstanding fixed-rate notes with varying maturities for an aggregate principal amount of $54,763 million. The remaining term in excess of one year as of September 24, 2022, is $13,488 million in 2023, $4,876 million in 2024, $1,418 million in 2025, $6,780 million in 2026, $312 million in 2027, and $412 million thereafter. The notes are senior unsecured obligations, and interest is payable in arrears.
Are there any contingent liabilities or off-balance-sheet arrangements that could impact the company's financial position? Yes, there are commitments and contingencies mentioned in the context that could impact the company's financial position.