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How to read a Balance Sheet?

Avadhut (Analyst) (53 Points)

26 June 2008

Hi,

I am an MBA and would like to know how to read Balance sheets and Income statement from a professional perspective.

I would like to use it for Investment purpose.

Thanks

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12 Replies

(Guest)

85 Views and not a single reply? ..

viral bhagdev (student) (46 Points)
Replied 02 July 2008

IT CAN'T BE SOLVED ON A SINGLE MAIL... U MUST PURCHASE THE BOOK NAMED "HOW TO READ A BALANCE SHEET" WHICH HAS BEEN WRITTEN BY AN ENGLISH AUTHOR... OR ELSE U MAY ASK THE TAX CONSULTANT OR CA'S...

srinivas (humble devotee of saraswati) (885 Points)
Replied 03 July 2008

There are no fixed formulas for reading a balance sheet and analying it . you ought to get into intricate details of overall as well as individual items of the balance sheet.

shailesh agarwal (professional accountant) (7642 Points)
Replied 16 January 2009

just see financial raios and cash flow ratios-and yieds-capital and investment return

Ahmed (Accounts) (77 Points)
Replied 20 January 2009

hi, if u want to investment purpose u munst have the konwledge of b/s. for u need to reed the percentage of Rate of return (Investment &profit), valuation of goodwill and shares, position of recivables and paybles and Reserve and surplus A/c.

harish maheshwari (job) (24 Points)
Replied 21 January 2009

we cant decribe all thing in one para.....u must have in deep knowlege...... technics of accountancy.... u can follow expert comment on b/s & p&l

ANIRBAN BANERJEE (Student) (298 Points)
Replied 22 January 2009

to read a balance sheets u got to have knowledge of the accounting & financial ratios...... but they are not wholly reliable for investment purpose...

Sakshi Chanana (Article) (141 Points)
Replied 26 February 2009

U r an MBA student and u must be having a basic knowledge of accounts.So apply that fundas & concepts in reading out the Balance Sheet.

Rina sangwal (Account executive) (88 Points)
Replied 26 February 2009

firsty u must have basic knowledge of basic concept like bussness,bussinessman,income,exp.,assets,liabl and investment.for this you must have read basic concepts of accounting.After khow that you learn balance sheet and income statement easily.