An annual report is an essential document that provides shareholders, investors, and other stakeholders with a detailed overview of a company's operations, financial performance, and position over the past fiscal year. These reports are typically published by publicly traded companies but can also be used by nonprofit organizations and private companies to communicate their yearly achievements and metrics.\n\nThe content of an annual report often includes the company's financial statements—such as the balance sheet, income statement, and cash flow statement—along with notes to these statements that explain important financial details. Additionally, the report will usually contain a message from the company's CEO or chairman, highlighting accomplishments and outlooks, and often includes many narrative sections regarding company strategies, risks faced, and plans for the future.\n\nFor example, a company may state in its annual report: 'As part of our growth strategy, we are focusing on increasing capital expenditure (capex) in sustainable technology initiatives'. This demonstrates the company's commitment and resource allocation towards future goals.