Why Balance Sheets Are Important to Analysis
A company's balance sheet provides a tremendous amount of insight into its solvency and business dealings. A balance sheet consists of three primary sections: assets, liabilities, and equity.
Depending on what an analyst or investor is trying to glean, different parts of a balance sheet will provide a different insight. That being said, some of the most important areas to pay attention to are cash, accounts receivables, marketable securities, and short-term and long-term debt obligations.
12
120 reads
CURATED FROM
IDEAS CURATED BY
"A good plan violently executed now is better than a perfect plan executed next week." - Patton
The idea is part of this collection:
Learn more about problemsolving with this collection
The importance of innovation
The power of perseverance
How to think big and take risks
Related collections
Similar ideas to Why Balance Sheets Are Important to Analysis
Understanding equity
Equity has different meanings depending on the context. Shareholder's equity is the most common type of equity - it represents the amount of money that a company's shareholders will get if all of the assets were liquidated and all the debt was paid off.
Equity can be found...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates