Now let's take a closer look to see how strong this balance sheet is by analyzing it with some common balance sheet ratios. There are about a half-dozen different ratios we can use to determine a ...
In this piece, I want to drill down deep into a ratio that I find extremely useful in assessing potential investments: the ratio of net operating assets (( NOA)) to total assets (the lower, the better ...
Stakeholders in a business need a way to conveniently assess the financial position of the firm. The balance sheet is a document designed to do just that. It provides a concise summary of everything a ...
The amount of debt a company takes on has an impact on its balance sheet. In particular, it affects the relationships between several components of the balance sheet. Analysts, investors and bankers ...
Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. The balance sheet, income statement, and cash flow ...
HAVE YOU EVER sat in your tax accountant's office for your annual review of your tax return and heard this somewhat common good news/bad news story? He'll say the good news is your sales are up and it ...
Director/Founder at Protea Financial - Guiding small businesses with high quality and cost-effective accounting. To continue reading this content, please enable ...
A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...
Nearly every financial crisis can be traced back to a foundation of weak balance sheets that cracked under the pressure of excessive debt. Companies, households, and governments load up on debt during ...
What does it mean when a company has a "fortress-like" balance sheet? Photo: Frank Kovalchek via Wikimedia Commons. Nearly every financial crisis can be traced back to a foundation of weak balance ...