balance sheet analysis
- noun
- /ˈbæl.əns ʃiːt əˈnæl.ə.sɪs/
- Specialized
:
análisis de balance
- A thorough balance sheet analysis is essential before considering any merger or acquisition.
Examples
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A thorough balance sheet analysis is essential for investors.
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After conducting a balance sheet analysis, the finance team identified areas to reduce liabilities.
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Regular balance sheet analysis helps companies maintain strong financial health and transparency.
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The accountant performed a balance sheet analysis last week.
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The accountant conducted a balance sheet analysis to determine the company's financial stability.
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During the meeting, we reviewed the balance sheet analysis to assess our assets and liabilities.
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A thorough balance sheet analysis revealed that the company needed to reduce its debts to improve its financial health.
Synonyms
1
3.5
To look at a company's money records to see how well it makes money and stays stable
How Thorough
Surface Forms
Morphology
The phrase is compositionally an 'analysis' of a 'balance sheet' (a sheet showing financial balances), so a learner who knows the constituent words can infer it refers to evaluating a financial document. However, the precise scope (assets, liabilities, equity) and the accounting conventions behind a balance sheet are technical and not fully predictable from the parts alone, so some domain knowledge is required.
Etymology
The term balance sheet analysis comes from the idea of a paper sheet that lists two sides: 'what a company owns' and 'what it owes', like a simple balance or scale. To do an analysis is to check that list carefully, so the phrase means studying the sheet to judge a company's 'financial health'.