Post by account_disabled on Mar 6, 2024 10:35:02 GMT
The has a few lean years the company has massive reserves to fall back on. . International Variations For U.S. companies the basic structure of a balance sheet is always the same but youll often see slight variations in the categories a company chooses to show. We saw several of them with Apples balance sheet and each company may have its own quirks. With the balance sheets of foreign companies the biggest difference youll notice is that sometimes they balance in a slightly different way. In the UK for example companies often subtract liabilities from assets.
The same principle as for U.S. balance sheets just a different Country Email List way of presenting it. Heres an example from British pharmaceutical company GlaxoSmithKline plc GSK Other international balance sheets follow a similar approach to either the US or UK examples with just a few variations in the order of the lines and the terms they use. Next Steps As youve seen the balance sheet is a businesss story just like the income statement. In this tutorial weve given you a dictionary to help you translate that story into plain English. You can now use what youve learned to examine any companys balance sheet and understand what its telling you. Dont worry too much about the small variations you come across.
Just concentrate for now. If you want to go deeper into a particular detail public companies include extensive notes in their annual reports to explain every line of the balance sheet. As with the income statement the best thing to do is to practise. You can find balance sheets for any public company on a financial website like Morningstar or Yahoo Finance or from the Investor Relations section of the companys website. See what kind of assets a company has how high its debts are how much profit it has accumulated. As you do this more often the terms will become more and more familiar.
The same principle as for U.S. balance sheets just a different Country Email List way of presenting it. Heres an example from British pharmaceutical company GlaxoSmithKline plc GSK Other international balance sheets follow a similar approach to either the US or UK examples with just a few variations in the order of the lines and the terms they use. Next Steps As youve seen the balance sheet is a businesss story just like the income statement. In this tutorial weve given you a dictionary to help you translate that story into plain English. You can now use what youve learned to examine any companys balance sheet and understand what its telling you. Dont worry too much about the small variations you come across.
Just concentrate for now. If you want to go deeper into a particular detail public companies include extensive notes in their annual reports to explain every line of the balance sheet. As with the income statement the best thing to do is to practise. You can find balance sheets for any public company on a financial website like Morningstar or Yahoo Finance or from the Investor Relations section of the companys website. See what kind of assets a company has how high its debts are how much profit it has accumulated. As you do this more often the terms will become more and more familiar.
