Clues In The Balance Sheet

Clues In The Balance Sheet

Clues in the balance sheet

The previous webpage was the concluding one in this survey f the balance sheet. The purpose of the survey has been not only to enable you to read companies' balance sheets with comprehension, and to follow Press analyses and comments, but also to help you to elicit facts from your own observation and interpretation of balance sheets. It will be of additional practical value to you to have a brief summary of those signs to detect in a balance sheet which have already been discussed in detail.

Summary of signs to detect

In your critical reading of a balance sheet note the figures for the preceding year, which are invariably quoted alongside those of the company's last financial year, to estimate the progress or otherwise of the company's finances. Of course, for this purpose, a comparison of more than two years' figures, where available, is of even greater value. Some companies actually publish ten-year balance-sheet statements at the end of their annual reports.

The signs to detect are:


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