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 ...

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 ...

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 and income statement of a bank's financial statements contain unique characteristics that can help you decipher how banks make money.

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 ...

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 ...