Three Things to Look for In a Company Balance Sheet

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Alright, investors.

Time to listen up.

Jim Cramer is constantly preaching about homework, and he's especially keen on investors listening to the earnings calls. But when it comes down to it, are you actually doing your homework?

If you're just relying on apps such as Acorns or Robinhood, it's time to actually start paying attention to the companies that you're investing in. 

In our TheStreet Explains series, we break down what to look for in a company's balance sheet.

It can be as simple as scanning your bank balance or a credit card bill. And the best part?

It doesn't have to be as anxiety-inducing. 

You see, a company balance sheet has a lot in common with that pesky bank statement that you receive every month.

And all you need to do is pay attention to four key numbers. 

The first number? Cash flow. Obviously, cash flow would be as important as your personal cash flow so that you can keep an eye on how much you're spending. 

And the other two?

Well, liabilities--aka debt--and assets. 

Want to learn more? Watch the video above. 

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