Balance Sheet
The balance sheet answers: Is the business solvent and liquid?
Key concepts
- Assets: What the company owns
- Liabilities: What the company owes
- Equity: Assets minus liabilities
Quick checks
- Cash vs debt
- Total liabilities trend
- Whether equity is growing over time
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Net Income
Profit after all expenses, interest, and taxes.
Learn More
Where You'll See This
Look for this in the Financial Statements section on any stock detail page.