VineLesson 82 · Written for kid, teen, and little
Reading an Annual Report
An annual report shows a company's money, its plans and its worries.
An annual report is a long document a company publishes once a year for the people who own it. It shows how much money came in from sales, how much went out on costs, what is left over, and what the bosses say about the year ahead. Because the company writes it, the cheerful parts are opinion, but the numbers and the risk section have to be there. Reading one means you are learning about a business instead of guessing about it. 📘
Words to know
5annual report
A big report a company writes once a year about how it did. It is where the real numbers live, not the advertising.
revenue
All the money that came in from selling things. The top line of the report.
expenses
The money a company spends to run itself. Wages, rent, supplies and advertising all sit here.
profit
What is left over after you take expenses away from revenue. $20,000 in and $17,000 out leaves $3,000.
shareholder
A person who owns a small piece of a company. The report is written for them.
Each part of an annual report answers a different question.
0 / 4 matched
In the full lesson
- 1Match the pairs
- 2Work out the number
- 3Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
The practice portfolio is open.
Start practicingMore in Reading a business
- 📋The Balance SheetA balance sheet lists what a company owns and what it owes on one day.
- 💵Profit vs CashA company can earn a profit on paper and still be short of cash.
- 🌱Growth or Value?Growth focuses on expected expansion; value compares price with business fundamentals.
- 🐘Small Companies vs Giant CompaniesHow big a company is changes how its stock tends to behave.
- 🍕Share BuybacksA buyback removes shares, so each share that is left is a bigger slice.
- 💧Liquidity: How Fast Can You Sell?Liquidity is how quickly you can turn something into cash.