why is a balance sheet important 
the balance sheet is an essential tool used by executives investors analysts and regulators to understand the current financial health of a business it is generally used alongside the two other types of financial statements the income statement and the cash flow statement balance sheets allow the user to get an at a glance view of the assets and liabilities of the company the balance sheet can help users answer questions such as whether the company has a positive net worth whether it has enough cash and short term assets to cover its obligations and whether the company is highly indebted relative to its peers 