How to Read a Balance Sheet for Total Liabilities and Equity. A company's balance sheet has two sides: ... Equity on a balance sheet is the book value of the shareholders' ownership interest.

Reading and understanding a balance sheet is part of that homework. Taken together with the income statement and cash flow statement, the balance sheet provides investors with an idea of the worth ...

The balance sheet reflects a company's health. ... Book value is what a business is worth after it pays all of its debts. If the business is a corporation that issues stock, ...

The book value formula. Taylor Tyson/Insider Calculated from a company's balance sheet, book value takes all the company's assets — physical things of value, from inventory and investments to ...

The formula for the book-to-market ratio is as follows: Book-to-Market Ratio = Book Value / Market Value. Investors can judge the resulting value against a figure of one (1). If the ratio is lower ...

Book value is a measure of the net worth of a company, so it may come as a surprise that Berkshire Hathaway (BRK.A-1.91%) (BRK.B-1.96%) trades for a premium of roughly 50% to its book value.

The recent rally in real estate prices – particularly in the UK – has disguised the fact that these assets still present a big problem for many bank balance sheets. According to CBRE, UK commercial ...