A company's retained earnings measure the amount of money the company keeps from its profits after paying dividends. On a company's balance sheet, the retained earnings is included as part of the ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

The three primary sections of a balance sheet are assets, liabilities and stockholders' equity. Liabilities and equity are the two sources of financing a business uses to fund its assets. Liabilities ...

Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...