Accountancy/Balance sheet

The Balance sheet is one of the important financial statement that helps in understanding the financial health of a company at the end of the financial year. There are 2 major components, Liabilities & Assets where Assets = Liabilities + Equity. Various financial metrics derived from Balance sheet may help you to understand the financial performance, stability, profitability, futuristic plans, ability to withstand uncertain times, cash position, and lots more about a company. It is one of the important statements considered for financial analysis & taking critical financial decisions.