How To Read Balance Sheet – Stock Market For Beginners – How To Read Earnings Report

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How to read a balance sheet of an earnings report of a stock. To pick the best stocks, we have to read a company’s financials in their earnings report. The balance sheet tells you how much money a company has compared to how much debt they have. A good company will have less debt and more assets. Using the balance sheet we can calculate a company’s book value and price to book ratio to see if they’re a good value buy in the stock market. A balance sheet contains important information like total current assets, and total assets, which is all things worth money the company has. It also has debt, current liabilities, and total liabilities which is how much a company owes in money. Subtracting their assets by their liabilities, we have the stockholder’s equity, which is the real worth of a company in terms of money. Apple stock has over 130 billion in equity so if the company were to sell everything, that’s how much they can pay the stock holders. Using the balance sheet, we can find the best stocks by using the these numbers to calculate a company’s real value.

7 COMMENTS

  1. What was the last balance sheet you liked?

    Subscribe and hit that bell for more videos on how to pick a good stock, and leave a like to be nice!

  2. Could you make a video on stocks you would buy and hold for the next 10 years? Also love this cannel keep up the good work!

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