Explore commonly used personal finance terms.
An annual statement is a comprehensive report provided by a company to summarize its financial condition over the previous year, including income statements, balance sheets, and cash flow statements. This statement provides shareholders and investors with insights into profitability, solvency, and financial health. Public companies are required to issue annual statements as part of regulatory compliance, ensuring transparency and helping investors make informed decisions. It is also used by credit agencies, analysts, and potential investors for financial assessment.
