How do I read a balance sheet?

How do I read a balance sheet?

Reading a balance sheet involves understanding its three main components: assets, liabilities, and equity. Would you like a breakdown of each?

Yes, please explain the assets section.

The assets section lists everything the company owns, divided into current assets (like cash and inventory) and non-current assets (like property and equipment). Do you want to know more about current vs. non-current assets?

What about liabilities?

Liabilities are what the company owes. They are also divided into current liabilities (due within a year) and long-term liabilities (due after a year). Would you like to see examples of each?

Yes, that would be helpful!