RETIRED CONTENTPlease note that the content on this page is retired. This content is not maintained and may contain information or links that are out of date.
Balance sheets contain valuable information for assessing a company's financial health. IT professionals should pay close attention to financial statements and use this guide to gain valuable insights. This is the second note in a three-part series on financial analysis. Other notes include, “Income Statements: The Crystal Ball of Vendor Viability” and “Financially Impact the Bottom Line.”
The Balance Sheet
The balance sheet lists what a company owns and owes at a specific point in time. This statement is different than the income statement, which measures profitability over a specific period of time. The balance sheet shows the financial strength of a company in three major categories: Assets, Liabilities, and Equity. Assets are equal to Liabilities plus Equity.