The Balance Sheet
A snapshot of what you own, what you owe, and what's left for the owners — at a single moment in time.
Three sections
Assets (current and long-term), Liabilities (current and long-term), and Equity. Current means due or convertible within 12 months.
Working capital
Current Assets minus Current Liabilities. Positive means you can pay short-term obligations. Negative is a flashing warning light unless your business model legitimately runs on it.
What investors check first
Cash balance, accounts receivable aging, deferred revenue, and any debt. Mismatches between Balance Sheet and P&L are an immediate diligence stop.
Key takeaways
- Snapshot in time; the P&L is a movie.
- Working capital signals short-term health.
- Cash, AR, deferred revenue, debt — the four checks.