To stay in business, your company needs to earn more than it spends, at least over the long term. A net income formula tells you whether you are earning or losing money. However, this equation only ...

A balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and shareholder's equity. A balance sheet is a type of financial statement. It gives you an ...

Balance sheets consist of assets, liabilities, and shareholders' equity, revealing financial health. Shareholders' equity equals assets minus liabilities and reflects theoretical investor value if a ...

Debt is a liability that a company incurs when running its business. The debt ratio gives company leaders insight into the financial strength of the company. This ratio is calculated by taking total ...

The household balance sheet accounts for current and future assets and cash flows, so that you can judge whether your current assets are sufficient to meet future expected spending. You get one chance ...

Some business owners are tempted to leave their balance sheets to their accountants, but it is important for leadership to understand how to read their balance sheets in order to keep an eye on their ...

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 ...

Stockholders' equity equals assets minus liabilities, framing investor stake after creditors. Paid-in capital includes monies from stock sales, often split into par value and excess amounts. Retained ...