10-K Report Digest - InvestSkill

⚠️ Data Verification — Do This Before Any Analysis

Before running the digest, confirm the filing details:

Identify the filing — confirm ticker, fiscal year-end, and exact 10-K filing date from SEC EDGAR.
State your source — note where the document came from (e.g., “SEC EDGAR, FY2024 10-K filed 2025-02-05”) at the top of the output.
Flag incomplete data — if only partial sections are available, list what is missing before proceeding.

⚠️ Source unavailable. If the full 10-K cannot be retrieved, display this warning and proceed only with the sections provided.

Produce a clean, structured markdown document that distills a company’s 10-K annual report into an abstract, per-section summaries, a digest of key metrics, and full source references. Designed for quick comprehension — not trading signals. Output language is selectable: English or Traditional Chinese (繁體中文).

How to Use

Provide input in any of these ways:

By ticker: AAPL — fetches the latest 10-K from SEC EDGAR
With fiscal year: MSFT FY2024
Pasted text: paste 10-K sections directly into the prompt
Language flag: add --lang zh-TW to output in Traditional Chinese (繁體中文)
File output: add --output <filename>.md to save the digest as a markdown file

Output Document Structure

The skill produces a single markdown document with the following sections in order.

1. Cover Block

# [Company Name] ([TICKER]) — 10-K Digest
**Fiscal Year:** [FY20XX ending MM/DD/YYYY]
**Filed:** [Filing date]
**Source:** SEC EDGAR — [Direct URL to filing]
**Prepared:** [Today's date]
**Language:** English | 繁體中文

2. Abstract

A 3–5 sentence executive summary of the entire 10-K. Cover:

What the company does (core business in one sentence)
Year-over-year financial performance headline (revenue, profit, FCF)
The single most important strategic development disclosed in this filing
The most material risk disclosed
Overall filing tone (transparent / cautious / optimistic)

3. Section Summaries

Summarize each major 10-K section. For each section, write 2–4 sentences capturing the substance — not just restating headings.

3.1 Business Overview (Item 1)

Core products/services and revenue model
Key markets and customer segments
Significant changes to business described in this filing (new products, acquisitions, divestitures)

3.2 Risk Factors (Item 1A)

Total number of risk factors disclosed
Top 3 risks by disclosure prominence (listed first, given most space, or new this year)
Any risks added or removed vs. prior filing (state “N/A if prior not available”)
One-line assessment: are risks standard boilerplate or specific and material?

3.3 Selected Financial Data / Properties (Items 1B–2)

Key quantitative highlights from Selected Financial Data if present
Material properties or facilities disclosed

3.4 Management’s Discussion & Analysis — MD&A (Item 7)

Revenue: total and YoY growth; organic vs. inorganic split if stated
Gross margin and operating margin trend
Management’s stated explanation for performance changes
Forward-looking statements: what management guided or projected
Liquidity summary: cash position, debt level, upcoming maturities

3.5 Financial Statements (Items 8)

Revenue, net income, EPS (GAAP) — current year vs. prior year
Operating cash flow and free cash flow (OCF minus capex)
Total assets, total debt, shareholders’ equity
Auditor name and opinion type (unqualified / qualified / adverse)
Any restatements or material changes in accounting policy noted

3.6 Quantitative Disclosures about Market Risk (Item 7A)

Primary market risks disclosed (interest rate, FX, commodity)
Sensitivity disclosures if provided (e.g., “1% rate rise = $X impact”)

3.7 Controls and Procedures (Item 9A)

Management’s conclusion on effectiveness of internal controls
Any material weaknesses or significant deficiencies disclosed

3.8 Legal Proceedings (Item 3)

Active material litigation or regulatory matters
Estimated financial exposure if disclosed

3.9 Executive Compensation & Governance (Items 10–13, from Proxy if incorporated)

CEO/CFO compensation summary
Board composition notes (independence, tenure)
Any significant governance changes

4. Key Metrics Table

Provide a concise metrics table drawn directly from the financial statements. Use exact figures from the filing; do not estimate.

| Metric                    | Current FY      | Prior FY        | YoY Change |
|---------------------------|-----------------|-----------------|------------|
| Revenue                   | $X.XX B         | $X.XX B         | +X.X%      |
| Gross Profit              | $X.XX B         | $X.XX B         | +X.X%      |
| Gross Margin %            | XX.X%           | XX.X%           | +X bps     |
| Operating Income          | $X.XX B         | $X.XX B         |            |
| Operating Margin %        | XX.X%           | XX.X%           |            |
| Net Income (GAAP)         | $X.XX B         | $X.XX B         |            |
| EPS Diluted (GAAP)        | $X.XX           | $X.XX           |            |
| Operating Cash Flow       | $X.XX B         | $X.XX B         |            |
| Capital Expenditures      | $X.XX B         | $X.XX B         |            |
| Free Cash Flow            | $X.XX B         | $X.XX B         |            |
| Cash & Equivalents        | $X.XX B         | $X.XX B         |            |
| Total Debt                | $X.XX B         | $X.XX B         |            |
| Net Debt / (Net Cash)     | $X.XX B         | $X.XX B         |            |
| Shares Outstanding (dil.) | X.XX B          | X.XX B          |            |

Note below the table: data source (filing section and page number if available).

5. Highlights & Concerns

Two short lists that give the reader the “so what” without leaving the digest. Draw every item directly from the filing and cite the source Item.

Highlights — up to 5 of the strongest positives disclosed this year (e.g., record revenue, margin expansion, new products/segments, strong FCF conversion, new buyback authorization, market-share gains). Format: - **[Headline]** — [one sentence] *(Item X)*

Concerns — up to 5 of the most material negatives or warning signs (e.g., decelerating growth, margin compression, rising leverage, customer/supplier concentration, new risk factors, active litigation, going-concern language). Format: - **[Headline]** — [one sentence] *(Item X)*

6. Management Outlook & Forward Guidance

Capture every forward-looking commitment made in the filing. Present as a table.

| Guidance Item              | What Management Said                | Time Horizon | Source     |
|----------------------------|-------------------------------------|--------------|------------|
| Revenue growth             | [target / range / directional]      | [FY / multi] | Item 7     |
| Margin target              | [gross / operating target]          | [horizon]    | Item 7     |
| Capex / capacity           | [planned spend or expansion]        | [horizon]    | Item 7     |
| Capital allocation         | [dividend / buyback / debt / M&A]   | [horizon]    | Item 7/8   |
| Strategic priorities       | [product roadmap, new markets]      | [horizon]    | Item 1/7   |

Only include rows the filing actually addresses. If the 10-K gives no explicit guidance (common — 10-Ks are backward-looking), state that and summarize any qualitative forward statements instead.

7. Prior-Year Promise Tracker

An accountability audit: take the forward-looking statements, targets, and stated priorities from last year’s 10-K (Item 7 MD&A) and score whether they materialized in this year’s results. This is the single most differentiating part of the digest — it measures management credibility over time.

| Prior-Year Commitment (FY[N-1] 10-K)   | FY[N] Actual Result          | Verdict     | Notes            |
|-----------------------------------------|------------------------------|-------------|------------------|
| [what management said they would do]    | [what actually happened]     | ✅ Delivered | [brief context]  |
| [e.g., "expand operating margin"]       | [e.g., "margin +120 bps"]    | 🟡 Partial  | [brief context]  |
| [e.g., "launch product X in H2"]        | [e.g., "slipped to next FY"] | ❌ Missed    | [brief context]  |

Verdict legend: ✅ Delivered · 🟡 Partial · ❌ Missed · ⏳ Too early to judge.

Close with a one-line Management Credibility read: e.g., “4/5 prior commitments delivered — high follow-through.” If the prior-year 10-K is unavailable, state N/A — prior filing not retrieved and skip the table.

8. Bull vs. Bear Synthesis

A lightweight face-off built strictly from evidence in this filing — not a full valuation call (defer to bear-case, stock-eval, and stock-valuation for that).

Bull case — 3–4 strongest points from this filing supporting the stock.

Bear case — 3–4 strongest points from this filing arguing against it.

Net read — one sentence weighing the two, consistent with the Investment Signal below.

9. Notable Disclosures

Bullet list of up to 8 items that are worth investor attention but don’t fit neatly into section summaries:

New segment or business unit disclosures
Changes in accounting estimates or policies
Related party transactions
Auditor changes
Going concern language (if any)
New share repurchase authorizations or dividend changes
Material acquisitions or divestitures announced
Specific named customers or suppliers with concentration risk

10. Source References

List all sources cited in this digest. Format:

## References

1. **SEC EDGAR Filing** — [Company] 10-K, FY[XXXX]
   URL: https://www.sec.gov/cgi-bin/browse-edgar?...
   Filed: [Date] | Accession No.: [XXXXXXXXXX-XX-XXXXXX]

2. **Item 1 — Business** (pp. X–X of filing)
3. **Item 1A — Risk Factors** (pp. X–X of filing)
4. **Item 7 — MD&A** (pp. X–X of filing)
5. **Item 8 — Financial Statements** (pp. X–X of filing)
6. **Item 9A — Controls and Procedures** (pp. X–X of filing)
7. **Exhibit 13 / Annual Report to Shareholders** (if incorporated by reference)
8. [Any additional sources used, e.g. earnings press release, investor presentation]

If page numbers are unavailable (e.g., pasted text), reference by Item number and section heading.

Language Mode

When --lang zh-TW is specified, output the entire document in Traditional Chinese (繁體中文), including:

All section headings translated
All narrative summaries written in Traditional Chinese
All tables with Chinese column headers
Cover block language field: 語言：繁體中文
Keep ticker symbols, financial figures, and SEC item numbers in their original form

Suggested Traditional Chinese headings for the interpretation sections: 亮點與隱憂 (Highlights & Concerns), 管理層展望 (Management Outlook & Forward Guidance), 上年度承諾兌現 (Prior-Year Promise Tracker), 多空對決 (Bull vs. Bear Synthesis).

English mode is the default when no --lang flag is given.

File Output

When --output <filename> is specified:

Save the digest as a markdown file at the specified path
If no path separator is present, save in the current directory
Confirm the file path after saving: ✓ Digest saved to: <path>
Default filename if --output flag is present without a name: <TICKER>-10k-digest.md

Thesis Invalidation

After delivering the digest, note what would make this document stale:

Re-run this digest when:

[ ] Company files next 10-K or 10-K/A amendment
[ ] Material 8-K filed disclosing a restatement or auditor change
[ ] 12 months have elapsed since the filing date

╔══════════════════════════════════════════════╗
║              INVESTMENT SIGNAL               ║
╠══════════════════════════════════════════════╣
║ Signal:      BULLISH / NEUTRAL / BEARISH     ║
║ Confidence:  HIGH / MEDIUM / LOW             ║
║ Horizon:     SHORT / MEDIUM / LONG-TERM      ║
║ Score:       X.X / 10                        ║
╠══════════════════════════════════════════════╣
║ Action:      BUY / HOLD / SELL               ║
║ Conviction:  STRONG / MODERATE / WEAK        ║
╚══════════════════════════════════════════════╝