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Table of Contents for Understanding the Balance Sheet

Investing Lesson 3 - Analyzing a Balance Sheet

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Balance Sheet

The balance sheet is a record of a company's assets and liabilities. Once you learn to read a balance sheet, you can understand how much capital a company requires to operate, calculate the maximum sustainable growth rate, and much, much more.

The balance sheet has several purposes including telling you the assets a company has to protect shareholders, how efficiently management is using capital, the risk of bankruptcy, and how fast a business can grow. This table of contents has been put together to make it easy for you to navigate Investing Lesson 3: How to Understand a Balance Sheet. Whether you are researching a stock or running your own small business, the balance sheet has never been easier to understand for new investors.

The table of contents below can help you navigate effortlessly - we've kept each balance sheet topic on its own page to make learning even easier. Grab a cup of coffee, and start reading through these pages. Please note, these lessons have been designed to be read sequentially! You should start at the beginning and work your way through, page by page, to learn the most.

How to Read a Balance Sheet Table of Contents
1. Introduction to the Balance Sheet
2. How to Get a Copy of a Company's Balance Sheet
3. What Is a Balance Sheet?
4. Sample Balance Sheet - The Coca-Cola Company
5. Current Assets on the Balance Sheet
6. What are Accounts Receivable?
7. Receivable Turns
8. Inventory on the Balance Sheet
9. Inventory Turns and Inventory Turnover Ratios
10. McDonald's vs. Wendy's - A Case Study in Inventory
11. Prepaid Expenses and Other Current Assets
12. Current Liabilities
13. Working Capital
14. Working Capital Per Dollar of Sales
15. Negative Working Capital
16. The Current Ratio
17. Quick Test Ratio
18. Long Term Investments
19. Property, Plant and Equipment
20. Intangible Assets
21. Goodwill on the Balance Sheet
22. Deferred Long-Term Asset Charges
23. Long Term Debt and Debt to Equity Ratio
24. Other Liabilities
25. Minority Interest on the Balance Sheet
26. Shareholder Equity
27. Book Value and Net Tangible Assets
28. Common, Preferred, and Convertible Shares
29. Capital Surplus and Reserves
30. Treasury Stock
31. Retained Earnings on the Balance Sheet
32. Formulas and Calculations for Analyzing a Balance Sheet
33. Putting It All Together - What the Balance Sheet Can and Cannot Tell You
34. Analyzing a Sample Balance Sheet - Microsoft Part I
35. Analyzing a Sample Balance Sheet - Microsoft Part II
36. Analyzing a Sample Balance Sheet - Simon Transportation Services
37. Epilogue for Simon Transportation

If you have already read this lesson, you can skip directly to the Balance Sheet Quiz.

Additional Resources To Teach You Investing

Other Investing Lessons You May Find Interesting
Investing Lesson 1 - Intro to the Stock Market
Investing Lesson 2 - How Stock Prices Are Determined
Investing Lesson 3 - Analyzing a Balance Sheet
Investing Lesson 4 - Analyzing an Income Statement

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