Learn how to analyze a company's balance sheet, including assets, liabilities, and equity, for smarter investment decisions.

Assets are quantifiable things — tangible or intangible — that add to your company’s value Liabilities are what your company owes to others, whether that’s an investor or a bank that issued a loan ...

The balance sheet provides a look at a business at a snapshot in time, often at the end of a quarter or year. In some cases, the accounts on the balance sheet -- assets, liabilities, and equity -- can ...

The three primary sections of a balance sheet are assets, liabilities and stockholders' equity. Liabilities and equity are the two sources of financing a business uses to fund its assets. Liabilities ...

Discover how to calculate shareholders' equity to assess a company's financial health. Learn the formula, components, and ...

A statement of shareholder equity can tell you if your business is doing well or if it's time to fine-tune some of your ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Return on equity measures how well the company is using its shareholders' or owners' invested money to generate profit. The formula for calculating return on equity for a given period is: ROE = Period ...

Understanding financial statements plays a key role in building robust financial models that can impact the potential valuation of your company. The Fast Company Executive Board is a private, ...

Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...

Equity is a term used in different contexts within business and investing, as well as in real estate and marketing. There are different types of equity that represent various classes of ownership or ...

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.