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an annual report is a document that publicly traded companies provide to the shareholders on a yearly basis its required by law its filed at the end of a financial year and the document prescribes the companys operations its performance and its financial position in a detailed manner in fact Warren Buffett explained it well when he said I really like to have I I like to know as much as I can about the person thats running it and how they think about the business and whats really going on the business in other words Ill I would like to have a report that would be identical to what if I owned half of a company but was away for a year and I had a partner who owned the other half when I came back that he would tell me about what had taken place during the past year and what he foresaw coming up and all of that I I that is what I think the purpose of the report is so the annual report is like a report card and like many report cards its not a very easy document to read but fortunate