You don’t need a business degree to understand a balance sheet. You need a clear explanation of what each term means, how the figures relate and what they reveal about a business.
Nigel Scarfe walks through the essentials so you can read a balance sheet with more confidence and use it to ask better financial questions.
What you’ll learn
- What assets, liabilities and equity mean
- How the main figures connect
- What working capital can tell you
- How a balance sheet helps you assess financial health
Watch this if
You want to understand the financial position of your own business, a supplier or a potential investment without getting lost in accounting jargon.
What to do next
Open a recent balance sheet and identify its assets, liabilities and equity. Note one figure you want your accountant or adviser to explain.