What the company owns and owes on one date
A balance sheet shows the company's financial position at a point in time. Assets — cash, receivables, buildings — sit on one side; liabilities and equity on the other, and the two sides always match. It tells you where the money came from and what it was turned into. The equity ratio and book value per share both come from it.
Assets of $500 million equal liabilities of $300 million plus equity of $200 million — equity is 40% of assets. That equation always holds.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.