Reporting
10-K style financial statements. Hieu Van Nguyen
A 10-K is the annual report a public company files. This page rebuilds that format for an invented company. Switch between the statements and the years, click any line to see how it connects to the others, and turn on the common-size view to read each line as a share of revenue.
What this shows
How the three statements connect: net income flows into the cash flow statement and the balance sheet balances
Segment, debt and share count notes that sit behind the statement lines
Ratios and integrity checks, so a number that does not tie is caught before it is presented
Sample build: 10-K style statements for an invented company
Marlowe Hollow Industries is an invented maker of industrial pumps and flow controls. Its three statements are laid out the way a 10-K prints them, with the notes behind them. Change the year, the view and four drivers, click any line to see how it connects, and watch the checks prove the statements still tie.
Synthetic inputs for illustration. Not data from any employer.
What to try
- Click Net income in the income statement. The lines it feeds light up in the other tabs, and the side panel explains each link.
- Switch the view to common size to read each line as a share of net sales, or of total assets on the balance sheet.
- Pick the Big buyback scenario. Cash drops to its floor, the revolver draws, the debt note changes and every check stays green.
- In the checks panel, plant a typing mistake and see which checks catch it.
What if, fiscal 2025
The statements for fiscal 2025 are rebuilt from these four drivers. The two earlier years stay fixed. The balance sheet and the checks recompute with every move.
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| $508,200 | $484,000 | $440,000 | |
| 304,920 | 295,240 | 272,800 | |
| 203,280 | 188,760 | 167,200 | |
| Operating expenses | |||
| 81,312 | 79,860 | 74,800 | |
| 20,328 | 19,360 | 17,600 | |
| 20,274 | 19,300 | 19,000 | |
| 121,914 | 118,520 | 111,400 | |
| 81,366 | 70,240 | 55,800 | |
| (5,700) | (6,000) | (3,000) | |
| 742 | 530 | 600 | |
| 76,408 | 64,770 | 53,400 | |
| 16,811 | 14,509 | 12,014 | |
| $59,597 | $50,261 | $41,386 | |
| Earnings per share | |||
| $2.08 | $1.69 | $1.34 | |
| $2.04 | $1.66 | $1.32 | |
| Weighted average shares outstanding (thousands) | |||
| 28,625 | 29,700 | 30,775 | |
| 29,225 | 30,200 | 31,275 | |
From net sales to net income, fiscal 2025 (in millions)
The same numbers are in the income statement above.
Swipe the table sideways to see all three years.
| As of December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| Assets | |||
| $45,989 | $37,084 | $26,505 | |
| 63,525 | 60,500 | 55,000 | |
| 76,230 | 73,810 | 68,200 | |
| 10,164 | 9,680 | 8,800 | |
| 195,908 | 181,074 | 158,505 | |
| 207,876 | 202,740 | 193,000 | |
| 40,000 | 40,000 | 40,000 | |
| 12,000 | 12,000 | 12,000 | |
| $455,784 | $435,814 | $403,505 | |
| Liabilities | |||
| 50,820 | 49,207 | 45,467 | |
| 25,410 | 24,200 | 22,000 | |
| 5,000 | 5,000 | 5,000 | |
| 81,230 | 78,407 | 72,467 | |
| 90,000 | 95,000 | 40,000 | |
| 15,000 | 15,000 | 15,000 | |
| 186,230 | 188,407 | 127,467 | |
| Stockholders' equity | |||
| 111,300 | 107,300 | 103,500 | |
| (146,000) | (116,000) | (44,000) | |
| 304,254 | 256,107 | 216,538 | |
| 269,554 | 247,407 | 276,038 | |
| $455,784 | $435,814 | $403,505 | |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| Operating activities | |||
| $59,597 | $50,261 | $41,386 | |
| 20,274 | 19,300 | 19,000 | |
| 4,000 | 3,800 | 3,500 | |
| Changes in operating assets and liabilities | |||
| (3,025) | (5,500) | (5,000) | |
| (2,420) | (5,610) | (8,200) | |
| (484) | (880) | (800) | |
| 1,613 | 3,740 | 5,467 | |
| 1,210 | 2,200 | 2,000 | |
| 80,765 | 67,311 | 57,353 | |
| Investing activities | |||
| (25,410) | (29,040) | (22,000) | |
| (25,410) | (29,040) | (22,000) | |
| Financing activities | |||
| - | 60,000 | - | |
| - | - | - | |
| (5,000) | (5,000) | (5,000) | |
| - | - | - | |
| (30,000) | (72,000) | (24,000) | |
| (11,450) | (10,692) | (9,848) | |
| (46,450) | (27,692) | (38,848) | |
| 8,905 | 10,579 | (3,495) | |
| 37,084 | 26,505 | 30,000 | |
| $45,989 | $37,084 | $26,505 | |
The notes explain the numbers behind the statements. They always show amounts. Click a line to see what it connects to.
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| Net sales | |||
| Fluid handling | 223,608 | 217,800 | 202,400 |
| Flow controls | 182,952 | 169,400 | 149,600 |
| Aftermarket service | 101,640 | 96,800 | 88,000 |
| $508,200 | $484,000 | $440,000 | |
| Segment operating income | |||
| Fluid handling | 37,870 | 33,815 | 28,072 |
| Flow controls | 31,558 | 26,738 | 21,054 |
| Aftermarket service | 20,738 | 18,087 | 14,674 |
| 90,166 | 78,640 | 63,800 | |
| (8,800) | (8,400) | (8,000) | |
| 81,366 | 70,240 | 55,800 | |
| (5,700) | (6,000) | (3,000) | |
| 742 | 530 | 600 | |
| $76,408 | $64,770 | $53,400 | |
| Operating margin by segment | |||
| Fluid handling | 16.9% | 15.5% | 13.9% |
| Flow controls | 17.2% | 15.8% | 14.1% |
| Aftermarket service | 20.4% | 18.7% | 16.7% |
Swipe the table sideways to see all three years.
| As of December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| 35,000 | 40,000 | 45,000 | |
| 60,000 | 60,000 | - | |
| - | - | - | |
| $95,000 | $100,000 | $45,000 | |
| (5,000) | (5,000) | (5,000) | |
| $90,000 | $95,000 | $40,000 | |
| Memo: revolver still available (facility of $75.0 million) | |||
| Undrawn revolver | 75,000 | 75,000 | 75,000 |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| $100,000 | $45,000 | $50,000 | |
| - | 60,000 | - | |
| (5,000) | (5,000) | (5,000) | |
| $95,000 | $100,000 | $45,000 | |
| Year | Principal falling due |
|---|---|
| 2026 (the current portion on the balance sheet) | $5,000 |
| 2027 | 5,000 |
| 2028 | 5,000 |
| 2029 | 20,000 |
| 2030 | 60,000 |
| After that | - |
| Total debt | $95,000 |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| $202,740 | $193,000 | $190,000 | |
| 25,410 | 29,040 | 22,000 | |
| (20,274) | (19,300) | (19,000) | |
| $207,876 | $202,740 | $193,000 | |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| Federal statutory rate | 16,046 | 13,602 | 11,214 |
| State taxes, net of the federal benefit | 1,834 | 1,684 | 1,388 |
| Foreign rate differences | 306 | 259 | 320 |
| Research credits | (917) | (777) | (641) |
| Stock compensation and other | (458) | (259) | (267) |
| $16,811 | $14,509 | $12,014 | |
| Effective tax rate | 22.0% | 22.4% | 22.5% |
| Each line as a percent of income before income taxes | |||
| Federal statutory rate | 21.0% | 21.0% | 21.0% |
| State taxes, net of the federal benefit | 2.4% | 2.6% | 2.6% |
| Foreign rate differences | 0.4% | 0.4% | 0.6% |
| Research credits | (1.2%) | (1.2%) | (1.2%) |
| Stock compensation and other | (0.6%) | (0.4%) | (0.5%) |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| Retained earnings | |||
| $256,107 | $216,538 | $185,000 | |
| 59,597 | 50,261 | 41,386 | |
| (11,450) | (10,692) | (9,848) | |
| $304,254 | $256,107 | $216,538 | |
| Total stockholders' equity | |||
| $247,407 | $276,038 | $265,000 | |
| 59,597 | 50,261 | 41,386 | |
| (11,450) | (10,692) | (9,848) | |
| 4,000 | 3,800 | 3,500 | |
| (30,000) | (72,000) | (24,000) | |
| $269,554 | $247,407 | $276,038 | |
Swipe the table sideways to see all three years.
| Year ended December 31, | |||
|---|---|---|---|
| Line item | 2025 | 2024 | 2023 |
| 28,850 | 30,550 | 31,000 | |
| 300 | 300 | 300 | |
| (750) | (2,000) | (750) | |
| 28,400 | 28,850 | 30,550 | |
| Shares used for earnings per share | |||
| 28,625 | 29,700 | 30,775 | |
| Shares from stock awards | 600 | 500 | 500 |
| 29,225 | 30,200 | 31,275 | |
Ratios, fiscal 2025
EBITDA (operating income plus depreciation and amortization) was $101.6 million. Free cash flow (operating cash flow less capital spending) was $55.4 million. Days measures use a 360-day year and year-end balances.
| Ratio | 2025 | 2024 |
|---|---|---|
| Gross marginGross profit ÷ net salesWhat is left of each sales dollar after making the product. | 40.0% | 39.0% |
| Operating marginOperating income ÷ net salesProfit from running the business per sales dollar. | 16.0% | 14.5% |
| Effective tax rateIncome tax ÷ income before taxesThe share of profit paid as tax. | 22.0% | 22.4% |
| Return on equityNet income ÷ average equityProfit earned on the owners' money. Buybacks shrink equity and lift it. | 23.1% | 19.2% |
| Current ratioCurrent assets ÷ current liabilitiesWhether short-term assets cover short-term bills. | 2.41x | 2.31x |
| Net debt to EBITDA(Debt less cash) ÷ EBITDAYears of operating cash earnings needed to repay net borrowings. | 0.48x | 0.70x |
| Days sales outstandingReceivables ÷ net sales × 360How long customers take to pay. | 45.0 days | 45.0 days |
| Days inventoryInventories ÷ cost of sales × 360How long stock sits before it is sold. | 90.0 days | 90.0 days |
| Days payablePayables ÷ cost of sales × 360How long the company takes to pay suppliers. | 60.0 days | 60.0 days |
| Free cash flow conversionFree cash flow ÷ net incomeHow much of reported profit turns into cash after capital spending. | 92.9% | 76.1% |
n/m means the ratio cannot be worked out, for example a tax rate on a loss. n/a means there is no earlier year in this build to compare with.
Integrity checks, fiscal 2025
Each check compares two numbers that must agree. It passes when they match to the nearest thousand. The difference is shown in dollars.
All 14 checks pass
| Check | Result | Difference in dollars |
|---|---|---|
| Assets equal liabilities plus equity | Pass | $0 |
| Ending cash on the cash flow statement equals cash on the balance sheet | Pass | $0 |
| Net income on the cash flow statement equals the income statement | Pass | $0 |
| Depreciation added back equals depreciation expensed | Pass | $0 |
| Retained earnings roll forward: opening, plus net income, less dividends | Pass | $0 |
| Total equity rolls forward with net income, dividends, stock pay and buybacks | Pass | $0 |
| Property and equipment roll forward: opening, plus capital spending, less depreciation | Pass | $0 |
| Working capital changes on the cash flow statement equal the balance sheet changes | Pass | $0 |
| Segment revenue adds up to consolidated net sales | Pass | $0 |
| Segment profit less corporate costs equals operating income | Pass | $0 |
| Debt in the note equals debt on the balance sheet | Pass | $0 |
| Repayments due next year in the note equal the current portion on the balance sheet | Pass | $0 |
| Borrowings and repayments on the cash flow statement explain the change in debt | Pass | $0 |
| Tax reconciliation adds up to income tax expense | Pass | $0 |
Fiscal 2024: all 14 pass. Fiscal 2023: all 14 pass.
How I read a 10-K
1. Start with the cash flow statement
Profit is a judgment about the year and cash is a fact. See whether operating cash flow covers capital spending and the dividend.
2. Read the debt note
Find what falls due in the next five years and whether cash on hand and cash flow can meet it.
3. Check the segments
See which segment earns the profit, and whether its margin differs from the others by more than its share of sales would suggest.
4. Then read the ratios
Margins, leverage and the days measures show whether the story in the first three steps holds together.
Fiscal 2025: net sales $508.2M, 5.0% on the year before, operating income $81.4M (16.0% margin), net income $59.6M, free cash flow $55.4M. All 14 integrity checks pass.
How I use it
Reading a filing quickly: start with the cash flow statement, then the notes
Spotting the line that moved, then clicking through to its cause
Building the same layout for a private company so it compares cleanly with public peers