by: Tam Ging Wien

When read with begin with A…B…C…, when we sing with begin with Do… Re…Me…

That at least how the song lyrics go.

But when we want to understand and assess the financials of a stock, we need to begin with the 3 financial statements, namely:

In our last “The Beginner’s Guide to…” series, we covered the The Beginner’s Guide to Understanding The 3 Financial Statements.

After having an understand of the 3 financial statements, we continue the series with analysing these financial statements in order to understand the financial health of a company. In this post, we will be learning how to analyse the Balance Sheet.

Do read the previous article first before continuing as it will give you a firm foundation of the 3 core financial statements.

Balance Sheet Current Ratio

This is a simple ratio of the current assets over the current liabilities. Current liabilities …