Identify the reporting date and the accounting period covered
Confirm the balance sheet basis (GAAP/IFRS) and whether it is consolidated or standalone
Note the balance sheet equation: Assets = Liabilities + Equity
Review assets by category (current vs non-current)
Check current assets: cash, accounts receivable, inventory, prepaid expenses
Check non-current assets: property, plant & equipment, intangible assets, long-term investments
Review liabilities by category (current vs non-current)
Check current liabilities: accounts payable, accrued expenses, short-term debt, current portion of long-term debt
Check non-current liabilities: long-term debt, lease liabilities, deferred tax liabilities, other long-term obligations
Review equity components: common stock/preferred stock, additional paid-in capital, retained earnings, accumulated other comprehensive income
Verify totals: total assets, total liabilities, total equity, and that totals balance
Compare year-over-year changes in each major line item
Analyze liquidity using current assets vs current liabilities
Analyze leverage using total liabilities vs equity and debt-related line items
Evaluate asset composition (cash-heavy vs receivables-heavy vs inventory-heavy)
Evaluate liability composition (short-term burden vs long-term obligations)
Assess capital structure changes by tracking equity growth or decline
Look for red flags: large increases in receivables/inventory, rising short-term debt, negative or shrinking equity
Check for significant off-balance-sheet items in notes (leases, guarantees, contingencies) if available
Use related notes to understand accounting policies and unusual line items
Use ratios derived from the balance sheet if needed (current ratio, quick ratio, debt-to-equity, working capital)