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

Publicly traded corporations are required to publish quarterly balance sheets that allow shareholders to compare a company’s assets with its liabilities. It’s also a good practice for private ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Asset management is an integral part of accounting basics that deals with the monitoring and maintenance of valuable items owned by an individual or an entity. Assets contribute significantly to the ...

A balance sheet offers a glimpse into a company’s assets and breaks them into two categories: current and non-current assets. Current assets like cash equivalents and securities can easily be ...

Assets generate income and appreciate in value, while liabilities drain resources and depreciate over time. Do you want to improve your net worth? Probably so. But if you’re like many people, you ...

Assets flowing in and out of a company during the course of its normal business which fund its day-to-day operations and pay expenses. These include cash and cash equivalents, accounts receivable, ...

Fixed assets are assets that are staples of your business, like property, equipment, and plants. These assets are tangible and depreciable, and typically last for longer than one year. Understanding ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

Plant assets are long-term, fixed assets essential for production. These assets are depreciated over time, impacting financial statements. Investors should analyze plant assets for long-term valuation ...

Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...