+1 862 207 3288 Till now as we get to know what is a balance sheet. The next important thing is how to read a balance sheet that is the analysis of a balance sheet which will also answer the questions like why do we study or make a balance sheet during an accounting cycle of an individual or organization.
A balance sheet reports a company’s assets, liabilities, and equity at a particular point of time. It plays a crucial role for investors, creditors and internal management to examine the growth of the company by just viewing its balance sheet. Not only this, but it also helps in allowing them to evaluate how the company is financing its operations and distributing to its owners.
There are various parameters to analyze the financial position with the help of a balance sheet such that current ratio, liquidity ratio, capital gearing ratio, debt-equity ratio, solvency ratio etc.
