How to Decipher an Annual Report

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I recently looked at the annual report for a company and felt a little intimidated reading through it. Any ideas that would help a new investor learn how to get the most out of reading an annual report?-- W.B.F. (via Stockpickr Answers)

For new investors, a company's annual report can seem anything but inviting. The numerous pages of cryptic numbers and graphs you'll encounter can make the investing world seem a bit out of reach. Believe it or not though, the annual report isn't some alien document. It's something that you can get a grasp of in no time.

For starters, what exactly is an annual report? ...