Glossary · SEC Filings
MD&A
MD&A is a standard section of the 10-Q and 10-K in which management explains in words why the period's results changed: which businesses grew, which costs rose, how cash flow and capital spending are being managed, and what risks it sees.
How to read it
The numbers tell you what happened; MD&A tells you why management thinks it happened. Focus on how it explains the changes in revenue and margins.
Read several consecutive periods of MD&A side by side. Shifts in wording (from "strong" to "stable," or a newly added risk disclosure) often reveal the direction earlier than the numbers do.
Common pitfalls
- MD&A is written by the company and vetted by its lawyers, so the tone skews neutral to positive, and bad news is often worded very delicately.
On FinDog
The "What Management Says" section of each earnings analysis distills the key points from the MD&A in the 10-Q / 10-K and assesses the overall tone.
Read the latest analyses →Related terms
- Form 10-QForm 10-Q is the formal quarterly report a public company files with the SEC for each fiscal quarter except the fourth. It contains complete unaudited financial statements, management's discussion and analysis, and updates to risk factors.
- GuidanceGuidance is management's forecast for next quarter's or the full year's revenue, margins, EPS and similar metrics, usually given as a range. It is one of the parts of an earnings report that moves the stock the most.
Glossary entries are for investor education only and are not investment advice. About & Methodology · Disclaimer