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 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 ...

Accounting for a letter of credit on your balance sheet depends on when you use it. One issued by your financial institution acts as a credit substitute. That institution, often a bank, steps into ...

The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet. Cash flow is, by definition, the change in a company's cash from one period to the ...

There are a multitude of financial ratios used by investors to measure the health of a company. Some measure cash flow and profitability, while others are used to determine the health of a company's ...

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 ...