Learn how to analyze a company's balance sheet, including assets, liabilities, and equity, for smarter investment decisions.

Fixed assets and depreciable assets are two very closely, interrelated items on a company's balance sheet. Let's define each and describe how they are the same and subtly different. A fixed asset is ...

Assets refer to resources that can be converted into cash. Learn how assets work, the various types of assets, how to determine an asset's value and more.

The balance sheet comprises assets, liabilities and owner's equity -- that is, the capital contributed by the owner of the business. These three items essentially represent the net worth of a business ...

The fixed-asset turnover ratio measures the amount of sales a business generates for every dollar invested in fixed assets. The ratio equals net sales divided by average net fixed assets. A high fixed ...

Fixed asset impairment occurs when asset market value drops below its book value. To detect impairment, compare asset's book value against its recoverable amount. If impaired, reduce book value on ...

A balance sheet is a versatile document that offers a snapshot of a company's or individual's finances at a given point in time. Businesses can use balance sheets to develop plans for the future and ...

A financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculate the net worth of a business. A basic tenet of double-entry ...

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.