This page is changing.
I'm documenting my journey from financial beginner to becoming financially literate through accounting, investing, and business.
You're welcome to learn with me.
#FinancialFreedom#financialliteracy#viralchallenge
Many people see huge liabilities and think the company is drowning in debts NO, for banks that conclusion is wrong, you must understand business models before judging the numbers. Deposit from customers goes into the bank liabilities because they owe you that money.
If I gave you a company's balance sheet right now, could you tell whether it's rich, broke, or drowning in debt?
Most people look at a company's share price. Smart investors look at its balance sheet first.
Here's how to read one.
Higher retained earnings.
Increased profits.
Stronger capital position.
What I would pay attention to
Equity is growing much faster than assets and liabilities.
Liabilities only grew by 0.93%, which is relatively conservative.
Assets grew by 2.74%.
Equity grew by 18.10%.