In other words, the balance sheet must balance. Subtracting liabilities from assets shows the net worth of the business A basic tenet of double-entry bookkeeping is that total assets (what a ...

Data found in the balance sheet, the income statement, and the cash flow statement are used to calculate important financial ratios that provide insight into the company’s financial performance.

Stocks to avoid have three things in common: "poor balance sheets, poor business models, and poor management". And in the current climate, monitoring balance sheets is more important than ever.