Key Differences Between a Balance Sheet and an Income Statement Balance sheets and income statements help investors make better decisions and gauge a company’s financial strength.

Analyzing a Balance Sheet vs. Income Statement A balance sheet provides data to create the current ratio , debt-to-equity ratio , and return on shareholders' equity ratio.

The balance sheet, income statement, and cash flow statement: these offer an inside look at a company. Browse Investopedia’s expert-written library to learn more.

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