A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

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 ...

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 ...

Financial statements are documents used to communicate to end-users a business's financial circumstances in an efficient and effective manner. Four basic financial statements exist: the balance sheet, ...

The balance sheet is one of three common financial statements businesses use to provide information to outside stakeholders. Publicly-traded corporations are required by federal law to submit a ...

The current ratio indicates a business's ability to pay its near-term obligations. Investors need to be cautious of companies with a significant portion of assets labeled as intangible or goodwill. To ...

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

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 ...