Balance Sheet

What is Balance Sheet?

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It follows the fundamental accounting equation where assets must always equal the sum of liabilities and equity.

Why It Matters

• It provides a snapshot of what a company owns and what it owes to others.

• Analysts use it to calculate key financial ratios like liquidity and debt to equity.

• It helps stakeholders understand the capital structure and financial stability of the business.