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.

When calculating the capital outlay of a business, you are seeking the balance of cash expenditures - payments made over the span of 12 months or more - or the allocation of funds toward the ...

Balance sheets consist of assets, liabilities, and shareholders' equity, revealing financial health. Shareholders' equity equals assets minus liabilities and reflects theoretical investor value if a ...

The balance sheet comprises assets, liabilities and owner's equity -- that is, the capital contributed by the owner of the business. These three items essentially represent the net worth of a business ...

Generally speaking, your return on invested capital, or ROIC, refers to the profits you receive relative to the money you've invested. For example, if you spent $100,000 to start a business and you ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...