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 ...
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 ...
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 ...
How do you spot bargain stocks? Investors often focus on profit-derived ratios, such as the price/earnings (p/e) ratio. But this can be simplistic, and also pretty much ignores one of the most ...
Company accounts can be baffling even to an experienced investor. In the final part of Bengt Saelensminde's three part company analysis, he demonstrates how to pick apart a balance sheet in just five ...
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 ...