Glossary term

Balance Sheet

A snapshot of a company's assets, liabilities, and equity.

The balance sheet shows what a company owns, what it owes, and what belongs to shareholders. It helps investors judge financial strength, debt risk, liquidity, and flexibility during downturns.

Example: Cash, inventory, factories, debt, leases, and shareholder equity all appear on the balance sheet.

Where this appears

Company quality step 4: financial health