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

The balance sheet comprises assets, liabilities and owner's equity -- that is, the capital contributed by the owner of the business. These three items essentially represent the net worth of a business ...

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 ...

A balance sheet is a versatile document that offers a snapshot of a company's or individual's finances at a given point in time. Businesses can use balance sheets to develop plans for the future and ...

A classified balance sheet breaks down assets, liabilities and shareholders' equity in classes and subcategories. Depending on whether office equipment breaks the capitalization threshold, equipment ...

Fixed asset impairment occurs when asset market value drops below its book value. To detect impairment, compare asset's book value against its recoverable amount. If impaired, reduce book value on ...

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, ...

Most people tend to form a picture of something specific in their head when they hear the word “asset.” It might be a stack of cash or a luxury vehicle, or even a piece of real estate. These answers ...

IMGCAP(1)]A major financial reporting and accounting deficiency needs our long-overdue attention: the failure to reflect the value of human capital as an asset on a firm’s balance sheet. Admittedly, ...

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.

While you may consider a balance sheet to be an essential financial statement for a company, assessing your own personal assets, equity and wealth in a well-laid-out financial report is equally ...

Now let's take a closer look to see how strong this balance sheet is by analyzing it with some common balance sheet ratios. There are about a half-dozen different ratios we can use to determine a ...