If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

Your balance sheet lists your company's assets, liabilities and equity; it is sometimes called your statement of net worth. A classified balance sheet is merely one that has been arranged so that key ...

Cash on a balance sheet includes currency, bank accounts and undeposited checks. It is necessary to keep some cash available in case of unforeseen expenses. Cash is reported in the "current assets" ...

The household balance sheet accounts for current and future assets and cash flows, so that you can judge whether your current assets are sufficient to meet future expected spending. You get one chance ...

A financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculate the net worth of a business. A basic tenet of double-entry ...

The balance sheet serves as a crucial tool for understanding the financial health of a business. The balance sheet comprises assets (both current and non-current), liabilities (current and non-current ...

Some business owners are tempted to leave their balance sheets to their accountants, but it is important for leadership to understand how to read their balance sheets in order to keep an eye on their ...

Discover what spontaneous assets are, why they matter in business, and how they affect financial health. Learn with examples ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

Nearly every financial crisis can be traced back to a foundation of weak balance sheets that cracked under the pressure of excessive debt. Companies, households, and governments load up on debt during ...