10K vs 10Q

Updated on April 8, 2024
Article byWallstreetmojo Team
Reviewed byDheeraj Vaidya, CFA, FRM

Difference Between 10K vs 10Q

SEC forms are essential documents that investors need to read to obtain accurate information about the company. SEC filings deliver pure details on a company, unblemished by brokerage analysis. One can find out everything they want to know about a company through these reports, cash in hand, a package of the CEO, etc. 10-K vs. 10-Q is the most common SEC filing.

It is worth it when analyzing a company to calculate what one thinks. But, first, one must get a good hands-on company balance sheet, typically locating a copy of the company’s annual report, 10-K, and 10-Q forms. Each document serves a different purpose and has a different role in understanding the business.

What is 10Q?

It is the company’s  quarterly report Quarterly ReportQuarterly reports are unaudited financial reports that are summarized versions of financial statements released by public companies every three months (quarter) to comply with compliance requirements.read more. Generally, the 10-Q is less detailed than the annual report. Companies must fill the same within 45 days of the end of their quarter.  The financial statementsThe Financial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more that are included in the quarterly report are generally unaudited. It contains fewer details than 10-K due to the abbreviated nature of the measurement period, among other things, under certain circumstances.

Form 10-Q can give a deep understanding of the long-run business changes even before it reflects earning figures once we can get details of things like huge net share buyback in a yearShare Buyback In A YearShare buyback refers to the repurchase of the company’s own outstanding shares from the open market using the accumulated funds of the company to decrease the outstanding shares in the company’s balance sheet. This is done either to increase the value of the existing shares or to prevent various shareholders from controlling the company.read more that is not done yet, it is included in the annualized earnings per shareEarnings Per ShareEarnings Per Share (EPS) is a key financial metric that investors use to assess a company's performance and profitability before investing. It is calculated by dividing total earnings or total net income by the total number of outstanding shares. The higher the earnings per share (EPS), the more profitable the company is.read more, and due to this, diluted earning per shareDiluted Earning Per ShareDiluted EPS is a financial ratio to check the quality of the Earnings per Share after taking into account the exercise of Convertible Securities like Preference Shares, Stock Option, Warrants, Convertible Debentures etc.read more is calculated. One can see the status and condition of different turnovers like stock turnover inventory turnoverInventory TurnoverInventory Turnover Ratio measures how fast the company replaces a current batch of inventories and transforms them into sales. Higher ratio indicates that the company’s product is in high demand and sells quickly, resulting in lower inventory management costs and more earnings.read more, etc. It helps to learn about legal risks, which could lead to lawsuits or legal action against a company.

10K vs 10Q

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What is 10K?

10-K has been filed annually that once a year to SEC. 10-K has all the in-depth details about the company. It contains all the elements one wants to know about a company, which will help him analyze its future growth and decide to invest wisely. 10-K has all details, from the CEO’s salary to the company’s financial condition.

Some investors feel that form 10-K is impossible to understand. They face many challenges while reading them. Still, if a reader has good knowledge of finance, it is easy for him to understand and extract meaningful information about a company and its structure. Many businesses have a long 10-K report of more than several hundred pages. In 10-K, some companies do not show financial statements and disclosures. And instead of this, there is a line written “incorporate herein by reference,” which means that all the financial details or disclosure information is already been released; this release could be an annual report Annual ReportAn annual report is a document that a corporation publishes for its internal and external stakeholders to describe the company's performance, financial information, and disclosures related to its operations. Over time, these reports have become legal and regulatory requirements.read more. If anyone wants to read it, he can read it. A copy of the annual report is available on the company and SEC websites.

10K vs 10Q Infographics

Here, we provide you with the top 5 differences between 10-K and 10-Q.

10K vs 10Q Infographics

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10K vs 10Q – Key Difference

The key differences between 10K and 10Q are as follows: –

Form 10-K is an annual report and is more comprehensive than a 10-Q, which is a quarterly report that consists primarily of the quarterly financial statements and the management discussion and analysis Discussion And AnalysisMD&A or management discussion and analysis is the part of financial statements where the company’s management discusses the company’s current performance using qualitative and quantitative measures to realize the details that otherwise would not have been available for analysis.read more disclosure (an analysis of period over period financial results. So, it will compare, e.g., Sept 30’2021 to Sept 30’2022 and tell why there were fluctuations between periods). Suppose one evaluates an investment in a company. In that case, they always want to look at the 10-K because it includes more information on its business plan, risks, management team, and financial condition. Use the 10-Q to update that information. The financial summary is too limited in scope. It is still essential to read the annual report, 10-K, and 10-Q because there are things one cannot include in a financial summary. SEC filing delivers the correct information about a company that helps investors make the right choice. Hence, the investor should read the 10-K and 10-Q to get the exact position of the company.

10K vs 10Q Head-to-Head Difference

Let us now look at the head-to-head differences between 10-K and 10-Q.

The company’s SEC filing of 10-K is done yearly, i.e., once a year.The company’s SEC filing of 10-Q is done quarterly, i.e., three times per year.
10K is extremely deep. Every detail is covered about the company.10-Q has fewer details.
10K is generally an audited report.10-Q is an unaudited report.
SEC filing must be done within 90 days after the company’s fiscal year.SEC filing must be done 45 days after the end of the company’s fiscal quarter.
For the preparation of the 10-K, a 10-Q is required.10-Q does not need 10-K.

Deadlines for Filing Periodic Report Of 10K vs 10Q

The deadlines for companies to file 10-K and 10-Q are as follows: –

Category 10K10Q
Large Accelerated Filter60 Days40 Days
($700 million or more)
Accelerated Filter75 Days40 Days
($75 MM or more and less than $700 million)
Non-accelerated Filter90 Days45 Days
(less than $75 million)

This article is a guide to the Difference Between 10K vs 10Q. Here we explain the difference between 10K and 10Q with infographics. You may also have a look at the following articles: –

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