annual financial statements

Annual financial statements are comprehensive reports that show a company's financial health over the past year. They typically include the balance sheet, income statement, and cash flow statement. The balance sheet details what the company owns and owes, the income statement shows how much money it earned and spent, and the cash flow statement tracks how cash moved in and out. These statements help stakeholders — like investors, lenders, and management — assess performance, make informed decisions, and track financial progress over time. They are essential tools for understanding a company's financial position and operations.