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 ...

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

Stockholders' equity is the value of assets a company has remaining after eliminating all its liabilities. Companies with positive trending shareholder equity tend to be in good fiscal health. Those ...

If you want to understand business finance, it’s important to understand the concept of equity. Equity is one of the most common ways to evaluate a company’s financial stability. Let’s look at how ...

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 book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

Reviewed by Natalya Yashina Fact checked by Suzanne Kvilhaug Analyzing a company's financial ratios is one way of examining a company's balance sheet and income statement. Financial ratios track a ...

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.