The analysis of a balance SHEET can identify potential liquidity problems. These may signify the company's inability to meet FINANCIAL obligations. An investor could also spot the degree to which a company is leveraged, or indebted. An overly leveraged company may have difficulties raising future capital. Even more SEVERE, they may be headed towards bankruptcy. These are just a few of the danger signs that can be detected with careful analysis of a balance sheet.
Beyond liquidity and leverage, there are certain very important benchmarks and aspects, which are helpful in the analysis of balance sheet.

• Revenues/Sales growth
• Bottom line growth
• ROI - Return on Investment
• Volume
• MARKET Capitalization
• Company management
• PSR (Price-to-Sales RATIO)
• Return on Equity
• Debt-to-Equity Ratio
• Beta
• Earnings Per Share (EPS).

The analysis of a balance sheet can identify potential liquidity problems. These may signify the company's inability to meet financial obligations. An investor could also spot the degree to which a company is leveraged, or indebted. An overly leveraged company may have difficulties raising future capital. Even more severe, they may be headed towards bankruptcy. These are just a few of the danger signs that can be detected with careful analysis of a balance sheet.
Beyond liquidity and leverage, there are certain very important benchmarks and aspects, which are helpful in the analysis of balance sheet.