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Balance Sheet Analysis

An in-depth explanation of how to interpret and analyze a company's balance sheet, focusing on its components, financial ratios, examples, and recommendations for use.

What is a Balance Sheet?

  • The balance sheet provides a snapshot of a company’s financial health at a specific point in time.

  • It answers three critical questions:

    1. What does the company own (assets)?

    2. What does the company owe (liabilities)?

    3. What is the value of the company’s ownership (equity)?

  • Formula: Assets=Liabilities+Equity\text{Assets} = \text{Liabilities}…

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John Cousins MBA-ASAP Newsletter
John Cousins MBA-ASAP Newsletter
Authors
John Cousins