Nobody has a crystal ball to tell the future, but a well-thought out pro forma can help you project to the best of your ability and explore different scenarios. A pro forma is simply a financial ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

A balance sheet provides a snapshot of a company's assets, liabilities and equity at a specific point in time, while an income statement summarizes its revenues and expenses over a period to show ...

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

A financial plan contains short- and long-term financial projections for a small or large business. A financial plan may also include a cash flow budget, which is a company's monthly forecast of cash ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

In accounting, every financial transaction is recorded by two entries on the company's books. These two transactions are called a "debit" and a "credit," and together, they form the foundation of ...

Complementing the balance sheet and income statement, the cash flow statement, a mandatory part of a company's financial reports since 1987, records the amounts of cash and cash equivalents entering ...

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

Both involve a company’s finances, but their differences are significant Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon ...