What is relevant to analyse when looking at a company’s presentation of its financial statement is the balance sheet?

Question

What are some of the things to take a close look at when analyzing the balance sheet of an entity?

Answer 1

When analyzing the balance sheet for a company, focus your attention on the current, long term, and intangible assets and current liabilities. A valuable computation is the current ratio, which is total current assets over total current liabilities. Usually, a ratio that is more than 1 is deemed healthy.

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