Assets are quantifiable things — tangible or intangible — that add to your company’s value Liabilities are what your company owes to others, whether that’s an investor or a bank that issued a loan ...

Equity is how much money you or your shareholders would have left if you were to liquidate the company and pay off all the debts. On your balance sheet, your company's assets equal your liabilities ...

The balance sheet provides a look at a business at a snapshot in time, often at the end of a quarter or year. In some cases, the accounts on the balance sheet -- assets, liabilities, and equity -- can ...

Company assets include both quickly sellable items and long-term holdings like real estate. Liabilities represent all debts, ranging from short-term bills to long-term loans. Stockholders' equity ...

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Stockholders' equity is the value of assets a company has remaining after eliminating all its liabilities. Companies with positive trending shareholder equity tend to be in good fiscal health. Those ...

Return on equity measures how well the company is using its shareholders' or owners' invested money to generate profit. The formula for calculating return on equity for a given period is: ROE = Period ...

Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry. With over a decade of editorial experience, Rob Watts ...

The balance sheet provides a look at a business at a snapshot in time, often at the end of a quarter or year. In some cases, the accounts on the balance sheet -- assets, liabilities, and equity -- can ...