balansomslutningens

Balansomslutningen is the total value of a company's assets at a given date, as recorded in the Swedish balance sheet. In double-entry accounting, assets equal liabilities plus shareholders’ equity, so balansomslutningen corresponds to the sum of both sides of the balance sheet. The possessive form balansomslutningens is used when referring to the amount or composition of this total, for example balansomslutningens storlek or balansomslutningens sammansättning.

Calculation and presentation: The balansomslutningen includes all current and non-current assets: cash and cash equivalents, accounts receivable, inventories, property, plant and equipment, financial assets, and intangible assets, among others. It is shown as the bottom total in the asset section of the balance sheet and is mirrored by the sum of liabilities and equity in the liabilities and equity section.

Use and significance: Balansomslutningen serves as a size metric for a company and a basis for liquidity and solvency analysis. Analysts often relate other figures to balansomslutningen, using ratios such as debt ratio (liabilities to balansomslutningen) or asset turnover (net revenue to balansomslutningen). The number is also relevant in comparisons across firms and over time.

See also: Balansräkning, Tillgångar, Skulder, Eget kapital.