One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

Stakeholders in a business need a way to conveniently assess the financial position of the firm. The balance sheet is a document designed to do just that. It provides a concise summary of everything a ...

Return on equity, or ROE, tells investors how much in profit a company makes for every dollar it has in stockholder equity on its balance sheet. However, in some cases, the amount of stockholder ...

Invested capital typically refers to a combination of shareholders' equity and long-term debt, both of which can be found on the balance sheet. Shareholders' equity is generally the last item listed, ...

Balance sheets consist of assets, liabilities, and shareholders' equity, revealing financial health. Shareholders' equity equals assets minus liabilities and reflects theoretical investor value if a ...

Available-for-sale securities are adjusted on balance sheets to reflect fair market values. Changes impact stockholders’ equity via Accumulated Other Comprehensive Income or Loss. Monitoring these ...

A company's retained earnings measure the amount of money the company keeps from its profits after paying dividends. On a company's balance sheet, the retained earnings is included as part of the ...

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry. With over a decade of editorial experience, Rob Watts ...

One of the most useful metrics in assessing a company's profitability is earnings per share, and it can be calculated from information found on that company's balance sheet and income statement, two ...

Many investors focus on how much a company pays in dividends. Most companies report their dividends on a cash-flow statement or in a separate accounting summary in their regular disclosures to ...

Knowing how to calculate home equity gives homeowners a way to understand their home’s worth — and potentially liquidate it for their needs or wants. Your home equity is basically your home’s fair ...