5 Tips For Reading A Balance Sheet

AAA

Reading The Balance Sheet

A balance sheet, also known as a "statement of financial position", reveals a company's assets, liabilities and owners' equity (net worth). The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company's financial statements. If you are a shareholder of a company, it is important that you understand how the balance sheet is structured, how to analyze it and how to read it.
Related Articles
  1. Forex Education

    Reading The Balance Sheet

    Learning to read the balance sheet can provide great insight into the financial strength of a company.
  2. Professionals

    The Cash Flow Statement

    CFA Level 1 - The Cash Flow Statement. A brief introduction to the relationship between cash flow and financial statements. Provides a flow chart highlighting the relationship.
  3. Forex Education

    6. Analyze With Ratios

    Learning to read the balance sheet can provide great insight into the financial strength of a company.
  4. Professionals

    Business: Balance Sheet and Income Statement

    Business: Balance Sheet and Income Statement
  5. Professionals

    The Relationship Between Financial Statements

    Financial statements are used together for many reasons - find out how they interact.
  6. Fundamental Analysis

    Cash Flow From Operating Activities

    Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements.
  7. Investing

    Outstanding Shares

    Learn more about this important number found on a company's balance sheet.
  8. Investing Basics

    Comparing the P&L Statement and the Balance Sheet

    Basically, the balance sheet shows how much a company is worth, while the P&L statement reveals if a company is profitable or not.
  9. Markets

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  10. Forex Education

    Accounting Basics: Financial Statements

    By Bob Schneider Financial statements present the results of operations and the financial position of the company. Four statements are commonly prepared by publicly-traded companies: balance ...

You May Also Like

Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center