A balance sheet is a financial statement that provides a snapshot of a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
Assets include everything a company owns, while liabilities encompass its debts and obligations.
Shareholders’ equity represents the residual interest after deducting liabilities from assets.
The balance sheet is a key tool for assessing a company’s financial health, liquidity, and overall net worth. It helps investors and analysts understand the firm’s financial position and make informed decisions.