How much are you worth? 🤔 A balance sheet statement is a ledger that tells you exactly what your company owns and owes. Assets = liabilities + equity, is the balance sheet equation.
Balance sheet statements help internal stakeholders decide which way to take the company. Cut your losses and chase another goose? Or keep doing what you've been doing perfectly?
Balance sheet statements are also useful for investors to understand what the company has and even get a glimpse of where the company is heading. Info from the balance sheet can be used to calculate multiple ratios such as efficiency, liquidity, and profitability ratios
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