Financial Statement Basics

ARS (Annual Report to Shareholders)

Annual Report to Security Holders

The annual report sent to shareholders along with the shareholder meeting notice — it overlaps with the 10-K, but it's a booklet made to be read.

In plain terms

When a company holds a shareholder meeting, it asks about agenda items with a [DEF 14A](form-def14a), and the annual report is what goes into that same envelope. A copy is also posted to the SEC, and the form name is ARS.

The content overlaps considerably with the [10-K](sec-filings). What differs is the purpose it was made for — the 10-K is a document written to the rules, while the ARS is a booklet put together with photos and charts for shareholders to read.

What it tells you

A letter from the chief executive to shareholders is often attached at the front. How the company summarizes the past year in its own words, and which figures it puts up front, show through there.

At the back, the 10-K is usually attached as is. So within a single file you can read the company's explanation and the audited financial statements one after the other.

Formula

ARS = the annual report sent to shareholders
Basis = proxy rules (Rule 14a-3) — sent together when asking about shareholder meeting agenda items
Filed with: SEC EDGAR (copy)

What high or low means

Placing it side by side with the same year's 10-K makes the split visible between "the words the company chose" and "the numbers the rules required."

Our screens show this form in the recent filings list on the stock detail page, and you can tap through to the original SEC document.

Caution

**The ARS is not an audited document in its entirety.** What the auditor gave an opinion on is the financial statements inside it; the cover letter and business overview are writing by the company.

The letter and summary are written in the order the company wants to emphasize. Even if revenue fell that year, other metrics may be put up front — checking the numbers on the financial statements side is more accurate.

Not every company files an ARS with the SEC. Its absence doesn't mean no annual report was made — some companies post it only on their own website.

Metrics to read alongside

10-K / 10-Q (SEC Filings)

The 10-K is written in the format the rules prescribe, while the ARS packages that for shareholders to read. In most cases both are contained in a single document.

DEF 14A (Shareholder Meeting Proxy Statement)

The ARS goes out in the same envelope as the proxy statement. The DEF 14A tells you what is being put to a vote, and the ARS tells you what happened during the year.

See it in real stocks

Search US stocks on Stocklore to see ARS and other financial metrics alongside the sector benchmark.

DAL Delta Air Lines PINS Pinterest, Inc.MDT Medtronic plc VEEV Veeva Systems Inc.MGM MGM Resorts International MA Mastercard Incorporated Search stocks →

Exactly how Stocklore computes this metric (formula, thresholds, SEC source) is on the methodology page.

This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.