Balance Sheet Analysis A Guide For Investors And Bankers

<p>Balance sheet analysis can reveal lot of important information about the company. A user of balance sheet if interpret the figures correctly can safeguard his interests and protect himself against creative accounting practices. </p><p> It is a snapshot of companys assets liabilities & equity on a given date.</p><p> It is used by management investors bankers & creditors rating agencies to understand the financial health of a company.</p><p> It is the minimum requirement for availing credit facilities from banking system.</p><p> Users can interpret balance sheet to know the liquidity & leverage position of a company.</p><p> It is used by investors to compare with other companies and to find out stocks good for value investing.</p><p> It enables the credit providers to ascertain proper utilization of funds by the company.</p><p> It is used by regulators to ensure regulatory compliances.</p><p> It is used by private equity investors venture capital funds to ascertain value of a company and to acquire stake at appropriate price.</p><p> It is used by top management to ascertain if the company is moving in right direction or needs some course correction.</p><p>In this book author has tried to elaborate basic structure of balance sheet along with classification of assets and liabilities of a company. The book provides commonly used tools for interpretation of balance sheet information for use by bankers and investors.</p>