A balance sheet is one of the core financial statements that shows a company’s financial position at a specific point in time. It includes assets (what the company owns), liabilities (what it owes), and equity (the owner's stake). Investors use balance sheets to assess financial health, stability, and liquidity. This module explains how to read and interpret balance sheet items like current assets, long-term liabilities, and shareholder equity. You’ll learn key metrics such as current ratio, debt-to-equity ratio, and book value. We’ll walk you through real-world examples from NSE-listed companies to illustrate how balance sheets reflect underlying business performance. Understanding this statement helps in evaluating whether a stock is undervalued or overleveraged. You'll also learn the red flags to watch out for — like rising debt levels or shrinking assets. Mastering the balance sheet provides a solid foundation for long-term investment decision-making, especially when comparing companies in the same sector.