What are some alternative methods to the balance sheet for representing a company's financial standing?

A balance sheet can reveal a lot about a company's financial health. For instance, let's consider a company that has high assets and low liabilities. This could indicate that the company is financially stable and has a good amount of resources at its disposal. On the other hand, if a company has high liabilities and low assets, it could suggest that the company is in financial distress and may struggle to pay off its debts. The equity section can also provide insights into the company's financial performance. If the equity is increasing over time, it could suggest that the company is profitable and generating wealth for its shareholders. Conversely, decreasing equity could indicate that the company is losing money. Thus, by analyzing a company's balance sheet, one can uncover the story behind its financial performance.

The balance sheet model applies to global companies like Apple or Google in the same way it applies to any other company. It provides a snapshot of the company's financial standing at a specific point in time, capturing what the company owns (assets) and what it owes (liabilities). The difference between the assets and liabilities is the company's equity. For global companies, the balance sheet might be more complex due to operations in different countries and currencies, but the fundamental principle remains the same.