Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

The current ratio indicates a business's ability to pay its near-term obligations. Investors need to be cautious of companies with a significant portion of assets labeled as intangible or goodwill. To ...

Current ratio is a popular way for investors to assess the health of a stock’s balance sheet. Current ratio is a measure of a company’s ability to pay its current liabilities and obligations due ...

Now let's take a closer look to see how strong this balance sheet is by analyzing it with some common balance sheet ratios. There are about a half-dozen different ratios we can use to determine a ...

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Kristina Zucchi is an investment analyst and financial writer with 15+ years of experience managing portfolios and conducting equity research. Chip Stapleton is a Series 7 and Series 66 license holder ...

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.