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Balance Sheet - Definition
Below, you'll find a definition of this investing term...

Definition: A balance sheet is a financial document that states the company's assets, liabilities, and stockholder's equity.  If you subtract the liabilities from the assets, you will have the company's net worth.

TeenAnalyst Advice: Balance sheets are good documents to look at when researching a company.  You'll learn all kinds of information about the company, such as how much cash they have on hand, how much money they owe and when they owe it, and what their biggest assets are.

It's great to compare the company's current balance sheet with its past balance sheets from the previous years.  It'll show you weather the company is taking on too much debt or if they're building up inventories.

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