What is a '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. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know 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, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. It is used alongside other important financial statements such as the income statement and statement of cash flows in conducting fundamental analysis or calculating financial ratios. Read More » Related to "Balance Sheet" Reading the Balance Sheet Learn about the components of a company balance sheet - aka the statement of financial position - and how it relates to other financial statements. Read More » How to Evaluate a Company's Balance Sheet A company's balance sheet should be interpreted when considering an investment as it reflects their assets and liabilities at a certain point in time. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Does the Balance Sheet Always Balance? Yes, a balance sheet should always balance. Total assets must always equal the sum of total liabilities and shareholders' equity. Read More » Sign Up for 'Chart Advisor' Want more Investopedia market news? Investopedia's expert analysts present market performance for the day and discuss with in-depth charting and technical analysis, a must read for traders. Subscribe» Related Definitions Capital Structure Capital structure is how a firm funds its operations and growth, combining long-term debt, specific short-term debt, common equity and preferred equity. Read More » Fixed Asset A fixed asset is a long-term tangible asset that a firm owns and uses to produce income, and it is not expected to be used or sold within a year. Read More » Long-Term Debt Long-term debt is debt that matures in more than one year. Long-term debt is usually viewed differently from the perspective of the issuer vs. the investor. Read More » Debt-To-Equity Ratio The debt-to-equity (D/E) ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy