The purpose of a balance sheet is to give interested parties an idea of the company’s financial position, in addition to displaying what the company owns and owes. It is important that all investors know how to use, analyze and read a balance sheet. As you can see from the balance sheet above, Walmart had […]
It is a snapshot at a single point in time of the company’s accounts—covering its assets, liabilities, and shareholders’ equity. Important ratios that use information from a balance sheet can be categorized as liquidity ratios, solvency ratios, financial strength ratios, and activity ratios. Liquidity and solvency ratios show how well a company can pay off […]
