An annual report is a financial report that is made available to shareholders of companies on an annual basis. The report gives shareholders specifics on the company’s performance in the prior year and other relevant information. Annual reports are important for a variety of reasons, including the ability to review the annual data that provides insight into the current financial well-being of the company.

Annual reports are required documents that provide a comprehensive overview of a company's performanceover a 12-month period. It offers details on the company's financial performance, including revenue, profits, expenses, assets, sales and other related figures. It also includes detailed information on company operations and activities, discussion of operations and risks, and any extraordinary events that occurred throughout the year.

The annual report is an important resource for key stakeholders, not just shareholders. The report provides certain specific details that can help investors track the performance of the company and make informed decisions about the company. It is a useful resource for lenders and investors when deciding whether or not to trust a company’s financial statements. Additionally, the report may also be used by businesses to gauge the progress of competitors and analyze industry trends.

Legislation enacted after the Stock Market Crash of 1929 required many companies to produce an annual report that specifically discussed their financial condition, operations and results. Today, registered mutual funds are required to distribute a full annual report to their shareholders each year.

The delivery of the annual report typically follows the company's financial year. Companies tend to make decisions on their method of distribution; many opt for printed copies or an electronic version. The annual report is typically made available to the public, although analysts and investors can also request to receive it in order to stay informed.

The annual report can be a valuable tool for both investors and stakeholders in understanding the success and potential of the company. There is a wealth of data that can be gleaned from an annual report and having access to it ensures that all investors have the same information to make sound judgments about their investments and the company’s operations. This access helps to create a fair and informed market and allows all stakeholders to better plan their investments and financial strategies.