How to Read a Balance Sheet

The balance sheet is one of the critical components of financial analysis as it gives a snapshot of a company's financial position. It outlines the company's assets, liabilities, and equities, helping you assess its financial health, durability, profitability, and solvency.

In this article, you'll understand the basics of a balance sheet, how to read the various components, and calculate critical financial ratios derived from the balance sheet.

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