Balance Sheet
The Balance Sheet provides a snapshot of a company's financial health at a single point in time. It follows the fundamental accounting equation: Assets = Liabilities + Stockholders' Equity.
Key Metrics Explained
- Total Assets: Everything the company owns that has value, like cash, inventory, and equipment.
- Total Liabilities: Everything the company owes to others, such as debt and accounts payable.
- Total Stockholders' Equity: The net worth of the company, belonging to the shareholders. It's the assets left over after deducting liabilities.
- Cash And Equivalents: The most liquid assets a company possesses.
- Long Term Debt: Debt that is due in more than one year. High levels can indicate financial risk.