Balance Sheet Analysis Tool

Purpose This Balance Sheet Analysis tool is designed to aid decision makers in simplifying the review of balance sheets. The categories and items in this tool should not be taken as an exhaustive list; there are spaces within each section of the spreadsheet to add additional items as required.

Categories
Assets Liabilities Equity Instructions

Assets = Liabilities + Equity

Includes both current and fixed assets. Current assets are cash, marketable securities, stock, receivables and inventories. Fixed assets include property, plant, and equipment, goodwill, intangibles, and long-term investments Liabilities are any debt the company owes. This includes accounts payable, notes payable, and short-term and longterm debt. A combination of stock and retained earnings.

1. Go to the worksheet labeled "Example Comparison" for a sample of the sheet filled in with two company's Balance Sheet numbers. Use the accompanying research note "Spotting Balance Sheet Red Flags" for commentary and analysis on the example. 2. Go to the worksheet labeled "Balance Sheet Analysis." Fill in the appropriate values for each category (cells to be filled in are highlighted in white). Add any categories needed by inserting more rows. Balance Sheet ratios will be automatically calculated below.

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ABC Balance Sheet

Assets
in millions of USD Current Year

Previous Year

Previous Year Previous Year -1 -2

$ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,851.00 32,900.00 8,881.00 491.00 1,614.00 48,737.00 2,346.00 3,309.00 499.00 11,004.00 1,299.00 3,621.00 22,078.00 70,815.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 15,982.00 44,610.00 7,987.00 421.00 1,566.00 70,566.00 2,326.00 3,115.00 569.00 12,210.00 1,774.00 1,829.00 21,823.00 92,389.00

Current Assets Cash & Equivalents Marketable Securities / Stocks Net Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equipment Goodwill Intangibles Long-Term Investments Other Long-Term Assets Deferred Long-Term Asset Charges Total Fixed Assets Total Assets

$ $ $ $ $ $ $ $ $ $ $ $ $ $

6,111.00 17,300.00 13,237.00 1,127.00 2,393.00 40,168.00 4,350.00 4,760.00 878.00 10,117.00 1,509.00 1,389.00 23,003.00 63,171.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $

6,714.00 27,447.00 11,256.00 1,478.00 2,115.00 49,010.00 3,044.00 3,866.00 539.00 9,232.00 1,295.00 2,611.00 20,587.00 69,597.00

Liabilities & Shareholder's Equity

Current Liabilities Accounts Payable Notes Payable / Short-Term Debt Other Current Liabilities Total Current Liabilities Total Long-Term Debt Other Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Retained Earnings Total Equity Total Liabilites & Shareholders' Equity

Current Year Previous Year

Previous Year Previous Year -1 -2

$ $ $ $ $ $ $ 5,768.00 11,109.00 16,877.00 4,158.00 21,035.00 $ $ $ $ $ $ $ 6,534.00 8,435.00 14,969.00 2,595.00 17,564.00

$ $ $ $ $ $ $ $ $ $ $

6,612.00 2,741.00 14,401.00 23,754.00 8,320.00 32,074.00 60,557.00 31,097.00

$ $ $ $ $ $ $ $ $ $

9,521.00 12,921.00 22,442.00 7,051.00 29,493.00 59,005.00 40,104.00

$ $

60,413.00 48,115.00

$ $

56,396.00 18,429.00 74,825.00

(29,460.00) $

(18,901.00) $

(12,298.00) $

63,171.00

69,597.00

69,150.00

92,389.00

Ratios
Number of Days in Period Net Credit Sales Cost of Goods Sold (COGS) Net Income Financial Strength Ratios Working Capital Current Ratio Return on Assets

Current Year Previous Year

365 $ $ $ $ 51,122.00 10,693.00 28,849.00 16,414.00 1.69 46% $ $ $ $ 365 44,282.00 7,650.00 26,175.00 26,568.00 2.18 38%

Previous Year Previous Year -1 -2

365 $ $ $ $ 39,788.00 6,031.00 25,353.00 31,860.00 2.89 36% $ $ $ $ 365 36,835.00 6,596.00 21,638.00 55,597.00 4.71 23%

Return on Equity Debt to Equity Ratio Efficiency Ratios Average Age of Receivables Average Age of Payables Inventory Turnover

93% 1.03 94.51 47.21 2.05

65% 0.74 92.78 78.48 1.94

53% 0.44 81.47 52.91 3.31 N/A

29% 0.23 79.14 64.75

XYZ Balance Sheet

Assets
in millions of USD Current Year

Previous Year

Previous Year Previous Year -1 -2

$ $ $ $ $ $ $ $ $ $ $ $ $ 1,737.60 3,108.24 1,077.72 1,687.04 115.40 7,726.00 2,045.84 1,564.36 194.48 223.96 117.84 4,146.48 11,872.48 $ $ $ $ $ $ $ $ $ $ $ $ $ 1,467.72 1,539.68 929.96 1,871.60 92.80 5,901.76 2,157.36 853.20 43.20 203.80 26.12 3,283.68 9,185.44

Current Assets Cash & Equivalents Marketable Securities / Stocks Net Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equipment Goodwill Intangibles Long-Term Investments Other Long-Term Assets Deferred Long-Term Asset Charges Total Fixed Assets Total Assets

$ $ $ $ $ $ $ $ $ $ $ $ $

2,703.16 3,162.00 935.96 1,728.40 114.08 8,643.60 1,824.72 1,698.80 161.60 9.04 148.60 3,842.76 12,486.36

$ $ $ $ $ $ $ $ $ $ $ $ $

3,244.96 3,374.68 1,174.52 1,779.56 119.00 9,692.72 1,877.28 1,582.04 225.68 217.36 212.04 4,114.40 13,807.12

Liabilities & Shareholder's Equity

Current Liabilities Accounts Payable Notes Payable / Short-Term Debt Other Current Liabilities Total Current Liabilities Total Long-Term Debt Other Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Retained Earnings Total Equity Total Liabilites & Shareholders' Equity

Current Year Previous Year

Previous Year Previous Year -1 -2

$ $ $ $ $ $ $ $ $ $ 3,811.84 902.36 1,645.04 6,359.24 4,800.00 11,159.24 100.00 1,569.24 713.24 $ $ $ $ $ $ $ $ $ $ 3,941.04 872.96 1,431.84 6,245.84 6,245.84 1,498.60 1,441.00 2,939.60

$ $ $ $ $ $ $ $ $ $ $

4,753.68 842.20 1,722.32 7,318.20 4,800.00 183.96 12,302.16 37.40 1,411.40 184.20

$ $ $ $ $ $ $ $ $ $

5,405.80 979.48 1,735.36 8,120.64 4,800.00 115.12 13,035.76 37.40 1,660.40 771.36

(1,264.60) $

(926.44) $

(956.00) $

12,486.36

13,807.12

11,872.48

9,185.44

Ratios
Number of Days in Period Net Credit Sales Cost of Goods Sold (COGS) Net Income Financial Strength Ratios Working Capital Current Ratio Return on Assets

Current Year Previous Year

365 $ $ $ $ 9,672.80 3,200.80 $ $ 365 10,392.20 3,520.70

Previous Year Previous Year -1 -2

365 $ $ 10,038.50 3,218.80 457.04 1,366.76 1.21 4% $ $ $ $ 365 11,055.00 4,287.20 (431.20) (344.08) 0.94 -5%

(875.90) $ 1,325.40 1.18 -7% $

(9.70) $ 1,572.08 1.19 0% $

Return on Equity Debt to Equity Ratio Efficiency Ratios Average Age of Receivables Average Age of Payables Inventory Turnover

-476% 66.79 35.32 179.38 0.46

-1% 16.90 41.25 189.87 0.51

64% 15.65 39.19 138.60 0.45 N/A

-15% 2.12 30.70 130.12

[Company Name] Balance Sheet

Input boxes are white.

Assets

in millions of [currency] Current Year Previous Year

Previous Year Previous Year -1 -2

Current Assets Cash & Equivalents Marketable Securities / Stocks Net Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equipment Goodwill Intangibles Long-Term Investments Other Long-Term Assets Deferred Long-Term Asset Charges Total Fixed Assets Total Assets

$ $

$ $

$ $

$ $

Liabilities & Shareholder's Equity

Current Liabilities Accounts Payable Notes Payable / Short-Term Debt Other Current Liabilities Total Current Liabilities Total Long-Term Debt Other Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Retained Earnings Total Equity Total Liabilites & Shareholders' Equity

Current Year Previous Year

Previous Year Previous Year -1 -2

Ratios
Number of Days in Period Net Credit Sales Cost of Goods Sold (COGS) Net Income Financial Strength Ratios Working Capital Current Ratio

Current Year Previous Year

Previous Year Previous Year -1 -2

Return on Assets Return on Equity Debt to Equity Ratio Efficiency Ratios Average Age of Receivables Average Age of Payables Inventory Turnover

N/A

[Company Name] Balance Sheet

Input boxes are white.

Assets

in millions of [currency] Current Year

Previous Year

Previous Year Previous Year -1 -2

Current Assets Cash & Equivalents Marketable Securities / Stocks Net Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equipment Goodwill Intangibles Long-Term Investments Other Long-Term Assets Deferred Long-Term Asset Charges Total Fixed Assets Total Assets

$ $

$ $

$ $

$ $

Liabilities & Shareholder's Equity

Current Liabilities Accounts Payable Notes Payable / Short-Term Debt Other Current Liabilities Total Current Liabilities Total Long-Term Debt Other Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Retained Earnings Total Equity Total Liabilites & Shareholders' Equity

Current Year Previous Year

Previous Year Previous Year -1 -2

Ratios
Number of Days in Period Net Credit Sales Cost of Goods Sold (COGS) Net Income Financial Strength Ratios Working Capital Current Ratio

Current Year Previous Year

Previous Year Previous Year -1 -2

Return on Assets Return on Equity Debt to Equity Ratio Efficiency Ratios Average Age of Receivables Average Age of Payables Inventory Turnover

N/A