What is balance sheet and how to find it in moomoo?

Investing with moomoo wrote a column · Jun 23, 2021 03:49

What is balance sheet and how to find it in moomoo?

Financial statements are written records that convey the business activities and the financial performance of a company. You can obtain much information from the statements.

Read: SEC Filings: What are they? How can they assist trading?

How to quickly spot key information in SEC filings?

Once you want to invest in a company, in most cases you will want to know its financial performance, and it's convenient for users to find the earnings report and key financial indicators in moomoo.

The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.

The Balance Sheet Formula

Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's or shareholders' equity).

Asset:

Cash and cash equivalents are liquid assets, which may include Treasury bills and certificates of deposit.
Accounts receivables are the amount of money owed to the company by its customers for the sale of its product and service.
Inventory represents one of the most important assets of a business because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders.

Liabilities:
Debt including long-term debt, in which the borrowing party gets permission to borrow money under the condition that it must be paid back at a later date, usually with interest.
Accounts payable, which is money owed by a business to its suppliers.

Owner's Equity:
Shareholders' equity is a company's total assets minus its total liabilities. Shareholders' equity represents the amount of money that would be returned to shareholders if all of the assets were liquidated and all of the company's debt was paid off.
Retained earnings are part of shareholders' equity and are the amount of net earnings that were not paid to shareholders as dividends.

How to find companies' balance sheets in moomoo?
Firstly entering the stock page, find the tab of "News" and the button of "Announcements". Then you can get the earnings reports which include complete balance sheets.
Another way is to find the tab of "Financial", in which you can quickly access the company's key financial indicators in a more visual approach.

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