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449 lessons · 1492 terms · 29 calculators
23 results for “balance sheet”
Lessons
- Fundamental AnalysisBeginner11 minThe balance sheet
A photograph of what the company owns and owes on one day, and the two ratios that reveal whether it can survive a bad year.
- Fundamental AnalysisAdvanced11 minContingent liabilities and what the balance sheet omits
Obligations that exist but are not recognised: guarantees, disputed taxes, litigation and commitments. Disclosed in a note, excluded from every ratio you computed.
- Fundamental AnalysisAdvanced15 minThe book that is not on the balance sheet
The presentation says assets under management grew 26%. The balance sheet says loans grew 11%. Both are correct, a quarter of the year’s pre-tax profit is the reconciling item, and it is several years of spread on sold loans counted in a single one.
- Fundamental AnalysisAdvanced12 minLeases on the balance sheet: what Ind AS 116 changed
Overnight, retailers and airlines acquired enormous debt and enormous assets without signing anything new. What actually happened, and why the ratios you compare to history no longer line up.
- Fundamental AnalysisAdvanced14 minWhen the rules change mid-series: policy, estimate and error
Your ten-year gross margin chart has a clean step in it, in a year when nothing happened to the business. Three quite different kinds of accounting change produce that step, and each one does something different to last year’s figures.
- Fundamental AnalysisAdvanced13 minWhat the debt actually costs, worked backwards
Borrowings averaged ₹2,200 crore through the year and the finance cost line says ₹186 crore. That is 8.5%, a rate this company could not obtain from anybody. Nothing has been misstated, and the reconciliation that explains it is four lines long.
- Fundamental AnalysisAdvanced12 minInventory, depreciation and asset quality
Two of the softest numbers on any balance sheet. Both depend on management judgement, and both tell you something before the profit line does.
- Fundamental AnalysisAdvanced12 minCapital work in progress, and the project that never finishes
An asset under construction sits outside depreciation and outside the return calculation. That makes it the tidiest place on an Indian balance sheet to leave something you do not want examined.
- Fundamental AnalysisAdvanced14 minWhere a lender’s money comes from, and what it actually costs
Two vehicle financiers report the same loan growth and almost the same lending rates, and one of them earns two full percentage points more. Nothing on the asset side explains it. The explanation is on the side of the balance sheet nobody reads.
- Risk & PsychologyIntermediate14 minThe liabilities that are not yours until they are
Standing guarantor or signing as co-applicant creates a full obligation on your own balance sheet — and it crystallises in the years the market is already falling.
Glossary
- Balance sheetAccounting
A photograph, not a film. Where fragility shows up before it reaches profits.
Read the lesson → - Balance sheet date window dressingFundamental analysis
Debt on one date can be arranged; twelve months of accrued interest cannot. An implied borrowing rate far above the rates printed in the borrowings note is how the gap shows.
Read the lesson → - Third balance sheetAccounting
Three balance sheet columns instead of two. An unusual sight and a completely reliable signal that something was restated, with the explaining note nearby.
Read the lesson → - Off-balance-sheetAccounting
Where the largest risks often sit, precisely because ratios never see them.
Read the lesson → - Delayed payment chargesTrading & orders
A dormant account with a small debit quietly compounds it. Exchange margin penalties are separate and passed through in full.
Read the lesson → - GoodwillAccounting
A standing candidate for future write-offs. Treat large goodwill with scepticism.
Read the lesson → - CapitalisationAccounting
The single largest lever on reported profit. Spend the same cash, show a much bigger number.
Read the lesson → - Ind AS 116Accounting
It raised reported debt and EBITDA for retailers and airlines overnight, breaking comparisons across the transition year.
Read the lesson → - Subsequent eventsAccounting
Occasionally the most important note in the entire report, and almost never read.
Read the lesson → - Right-of-use assetAccounting
The other side of the lease liability. It is depreciated over the term, which is where the old rent expense went.
Read the lesson → - Loan write-offAccounting
It brings in nothing and changes nothing about what was lost. What it changes is what the bad-loan percentage looks like — so add write-offs back to both the impaired loans and the book before comparing two lenders.
Read the lesson → - DerecognitionAccounting
One question with two entirely different sets of financial statements behind it. Yes, and the loans go and a gain is booked now; no, and they stay and the cash received is a borrowing.
Read the lesson →
Calculators
- 🧮 Leverage stress test
Same business, different debt mix. See how leverage amplifies a good year and what it does to a bad one.
The balance sheet →