Reading Financial Data - Step by Step / Reading a company's financials
Balance sheet basics
A balance sheet shows what a company owns, owes, and what remains for shareholders.
Concept
The basic relationship is assets minus liabilities equals equity. In real filings, small differences can appear because of rounding, presentation, or non-controlling interests.
Worked Example: Check Apple's balance sheet relationship
- Assets are $359.2 billion for fiscal 2025.
- Liabilities are $285.5 billion.
- Assets minus liabilities = $359.2 billion - $285.5 billion = $73.7 billion.
- Reported stockholders' equity is $73.7 billion. It should be close to the same balance-sheet idea, not treated as a hand-entered guess.
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Sources
Informational only - not investment advice.