Balance Sheet
![](Img/onepixel_1.gif) |
The balance sheet shows what a company owns and what it owes; the difference is what the company is "worth", at least on paper.
One huge problem is that the fair market value of many assets can be very different from the "book values" shown here.
So people looking for "value" stocks need to do more research, beyond the balance sheet.
Consolidated Financial Statements
Balance Sheet
(click on highlighted text for more information)
|
(dollar figures are in thousands)
|
2009
|
2003
|
|
Assets
|
Current Assets:
|
Cash and Equivalents
|
$ 2,738
|
$ 2,260
|
Accounts Receivable
|
1,175
|
996
|
Inventory
|
1,034
|
897
|
Total Current Assets
|
4,947
|
4,153
|
Real Estate (purchase price)
|
31,677
|
29,847
|
Equipment (depreciated value)
|
13,448
|
12,958
|
Goodwill (depreciated value)
|
3,167
|
3,334
|
Total Assets
|
53,229
|
50,292
|
|
Liabilities
|
Current Liabilities:
|
Accounts Payable
|
1,488
|
1,092
|
Short-term Debt
|
123
|
147
|
Total Current Liabilities
|
1,611
|
1,239
|
Long-term Debt
|
245
|
267
|
Other Liabilities
|
122
|
101
|
Total Liabilities
|
1,978
|
1,607
|
|
Total Shareholders' Equity
|
51,251
|
48,685
|
Notes
Investors generally like to see that current assets are greater than current liabilities by a comfortable margin.
(To be conservative, they often exclude inventory from current assets when they do this comparison).
This shows that the company probably won't suffer a cash shortage during the next year, which could force it to issue new stocks or bonds to survive.
This sample balance sheet leaves something out -- it makes it look like Assets - Liabilities = Equity, just by the definition of equity.
A real balance sheet has to show how equity has actually been "built up" over the years, from stock sales and retained earnings.
It then verifies that Assets really does equal Liabilities plus Equity, which is a slightly more confusing form of the same equation.
|
|
|
|
![](Img/onepixel_1.gif) |
|
|