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

A company's assets include everything of value the company has, such as cash, investments, or property. Assets are split into two categories: current assets and long-term assets. Current assets are ...

Strong accounting practices are key to managing your small business. A major part of accounting is understanding a balance sheet, the part of your financial statements that show your net worth. To ...

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

Assets represent any items owned by an individual or a business that have the potential to grow in value. Defining assets isn’t easy, as “any item” is a broad category that encompasses myriad items ...

These are examples of assets not normally easily disposed of. Key Takeaway: Formally, if an asset isn't expected to be cashable within a year, it isn’t considered a current asset. In business, a ...

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past ...

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 ...

Total assets to total accruals is an analysis ratio that can be used to evaluate the quality of total revenue. Earnings quality is significant, because revenue includes both permanent and transitory ...

Working capital is one of the most critical financial metrics for any business, yet it’s often misunderstood or overlooked. At its core, working capital represents the difference between a company’s ...