Balance Sheet
Assets, liabilities, and equity at a single point in time.
What is Balance Sheet?
Assets = Liabilities + Shareholders' Equity, always. Items are split into current (converting to cash or due within a year) and long-term. Working capital - current assets minus current liabilities - is the quick read on short-term health.
Balance Sheet: a worked example
$4M current assets and $2.5M current liabilities gives $1.5M of working capital.
More terms in Economics & Financial Reporting
Business Cycle
The recurring pattern of expansion, peak, contraction, and trough.
Leading, Coincident & Lagging Indicators
Data series that move before, with, or after the business cycle.
Deflation vs. Disinflation
Falling prices versus a slowing rate of price increases.
Currency Valuation & Exchange Rates
What one currency buys of another, and who wins when it moves.
Sovereign Debt
Bonds issued by a national government.
Trade Deficit
A country imports more goods and services than it exports.
Income Statement
Revenue, expenses, and profit over a period of time.
Statement of Cash Flows
Where cash came from and where it went: operating, investing, financing.