{"id":1794,"date":"2021-10-21T10:39:00","date_gmt":"2021-10-21T10:39:00","guid":{"rendered":"https:\/\/rakshithpai.com\/?p=1794"},"modified":"2023-12-22T13:41:29","modified_gmt":"2023-12-22T13:41:29","slug":"how-to-read-a-balance-sheet-as-an-investor","status":"publish","type":"post","link":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/","title":{"rendered":"How to read a Balance sheet as an Investor"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662c1ae999bc6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\" style='display:none' id=\"ez-toc-cssicon-toggle-item-662c1ae999bc6\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#What_is_a_Balance_Sheet\" title=\"What is a Balance Sheet?\">What is a Balance Sheet?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#Three_main_components_of_%E2%80%98Balance_Sheet_are_as_follows\" title=\"Three main components of \u2018Balance Sheet\u2019 are as follows;\">Three main components of \u2018Balance Sheet\u2019 are as follows;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#What_to_read_in_a_Balance_Sheet\" title=\"What to read in a Balance Sheet:\">What to read in a Balance Sheet:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#Also_read\" title=\"Also read:\">Also read:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Balance_Sheet\"><\/span><strong>What is a Balance Sheet?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">A balance sheet is a document that provides information about the company&#8217;s financial performance (present &amp; past). It gives a clear distinction between asset and liability. This gives an indication of the company&#8217;s financial health. At any particular point in time. The worth of a company can be found by its balance sheet.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Hence, it is very important for one to understand what\u2019s there is a Balance sheet and how to analyze the report in order to make a better judgment over investing.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe loading=\"lazy\" title=\"4 Important aspects to check when reading a Balance Sheet\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/t5OkTyAl27k?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Three_main_components_of_%E2%80%98Balance_Sheet_are_as_follows\"><\/span><b>Three main components of \u2018Balance Sheet\u2019 are as follows;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><b>1.Assets<\/b><span style=\"font-weight: 400;\"> &#8211; Assets are what the company owns. The assets owned are valued each year if in case of appreciation or depreciation in the price. Assets are used by the company in order to produce goods, provide services, or both. It is the economic value of assets being considered in valuing a Balance sheet for it defines an accurate estimation of what the company owns. <\/span><\/p>\n\n\n\n<p>The company\u2019s assets can be segregated as long-term assets and current assets. And, the latter can also be segregated into cash and cash equivalents and others.<\/p>\n\n\n\n<p><b>2.Liability<\/b><span style=\"font-weight: 400;\"> &#8211; Liabilities are those that the company owes to others. It is an obligation to pay or settle back all the outstanding liabilities at some point in the future. Liabilities can be short term and long term. It can also be owed to the shareholders or other stakeholders.<\/span><\/p>\n\n\n\n<p><b>3.Shareholders Equity<\/b><span style=\"font-weight: 400;\"> &#8211; Each individual shareholder is termed as part-owner of the business. He\/she, if owns shares of the company, will also be owning the company&#8217;s assets and liabilities at any given time. While \u2018stakeholders\u2019 are those that have an interest in the company. Shareholders have ownership over the company.<\/span><\/p>\n\n\n\n<p><b>Basic principle =&gt; (Asset = Liability + Shareholders Equity)<\/b><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_read_in_a_Balance_Sheet\"><\/span><b>What to read in a Balance Sheet:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li><b>Understand the business <\/b><span style=\"font-weight: 400;\">&#8211; Understanding the business is very important. Every business comes with a story. And, the story can be represented in numerical form I.e, balance sheet. To read and understand the balance sheet is to know the story behind the business.<\/span><\/li>\n\n\n\n<li><b>Size of the company<\/b><span style=\"font-weight: 400;\"> &#8211; The balance sheet size is the term used. Here, we\u2019ll see the valuation of assets, liabilities, and other equity accounts in real term. The numerical valuation of the market capitalization of the company is known. This way, an individual before investing can be sure of whether his\/her investment is in a Small, Mid, or Large cap company. <a href=\"https:\/\/rakshithpai.com\/portfolio-allocation-asset-correlation-importance\/\">Portfolio allocation<\/a> into diversified market cap range is suggested.<\/span><\/li>\n\n\n\n<li><b>Source of Capital<\/b><span style=\"font-weight: 400;\"> &#8211; Any company-funded only via equity is termed more diluted in terms of equity capital than the ones funded partly via equity and partly via debts. And, extreme equity dilution is considered an unfavorable option. To balance out the debt-equity mix. The company must consider the right strategy and must raise from appropriate sources.<\/span><\/li>\n\n\n\n<li><b>Cost of Capital<\/b><span style=\"font-weight: 400;\"> &#8211;&nbsp; In order to not put pressure on the company&#8217;s working capital. It is suggested to have the cost of capital as low as possible. An investor must consider checking the industry average cost of capital and compare the same to the company average to evaluate the management efficiency in managing the cost of capital.<\/span><\/li>\n\n\n\n<li><b>Debt-Equity Mix<\/b><span style=\"font-weight: 400;\"> &#8211; Debt to Equity is an important financial ratio that indicates the relative position of equity holders and other debts in the company\u2019s assets. A more financially stable company usually has a debt-to-equity ratio at \u20181\u2019. Above \u20181\u2019 indicates a larger debt level when compared to equity. It is suggested to compare the company&#8217;s debt-equity to the industry average for optimum comparison.<\/span><\/li>\n\n\n\n<li><b>Debt-service coverage ratio<\/b><span style=\"font-weight: 400;\"> &#8211; Is the firm&#8217;s cash flow sufficient enough to service the long term and short term debt? If yes, to what extent. Here, the firm&#8217;s ability to pay back the debt and the debt-related cost is determined. The logic is, the company&#8217;s current asset&nbsp; (preferably cash and cash equivalents) should be able to service the short term debt entirely and interest part of long term debt (that year interest cost).<\/span><\/li>\n\n\n\n<li><b>Reserves to meet unconditional happenings<\/b><span style=\"font-weight: 400;\"> &#8211; Balance sheet reserves are mainly from two sources;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Past year profit\/loss.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Issuance of equity or others.<\/span><\/li>\n\n\n\n<li>The said reserves should be sufficient enough to meet the company&#8217;s expenses of unconditional nature. Reserves provide a safety net against being winding up. Hence, sufficient reserves are a must. <\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><b>Cyclical industry<\/b><span style=\"font-weight: 400;\"> &#8211; If the business is cyclical in nature. The same would have a different set of earnings graph. The cyclical business is such that they make an entire year&#8217;s revenue in a matter of 3-6 months. The second half of the year will either be left closed or spent in preparation. It is crucial to understand the market structure of such a business.<\/span><\/li>\n\n\n\n<li><b>Statutory dues<\/b><span style=\"font-weight: 400;\"> &#8211; If the company&#8217;s ability to meet its statutory dues are not met from time to time. It signifies a big red flag for the company is unable to arrange the required capital to settle the same. Statutory dues such as taxes, employee compensations, other regulatory fees, and charges in any other such name if left unpaid or shown as outstanding for a long period of time. The same should be taken seriously.<\/span><\/li>\n\n\n\n<li><b>Directors note &amp; Auditors note<\/b><span style=\"font-weight: 400;\"> &#8211; Directors are the ones with governing authority in any business. Their note consists of such aspects that have a material impact on the company\u2019s businesses. Hence, understanding the director&#8217;s note is very important.<\/span><\/li>\n<\/ol>\n\n\n\n<p><span style=\"font-weight: 400;\">Auditors are the last line of defense with respect to any mismanagement or malpractice. If any such ill activities, the same should be mentioned in the auditor&#8217;s report. To understand the management&#8217;s capability to overcome such issues, one needs to read the auditor\u2019s report.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Before investing in any company, the financial statements which include a Balance sheet, Cash flow statement, Profit &amp; Loss accounts, notes to accounts, and other financial documents should be read thoroughly. These statements provide all the required information for the investor.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">These are the only real documents an investor can rely on for the same is under statutory obligations by the management and other stakeholders to be true and be original. Remember, nowadays we have seen other news articles and magazines post their opinion and post them as news. These opinions can be biased opinions and that\u2019ll impact the legitimacy of the report.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">So, to avoid such a situation. I would suggest the readers to keep the Financial statement as their base document and any other source of information shall only be used as add-ons.\u00a0<\/span><\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Disclaimer: <\/strong>All the information on this website is published in good faith and for general information purpose only.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Also_read\"><\/span><strong>Also read:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/rakshithpai.com\/itc-ltd-company-worth-investing-for-long-term\/\" target=\"_blank\" rel=\"noreferrer noopener\">ITC Limited &#8211; Is it worth investing?<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/likhitha-infrastructure-ipo-listing-worth-subscribing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Likhitha Infrastruture IPO. Is it worth subscribing?<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/stock-investing-beginners-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Invest in Stock Market? A Beginners guide to Investing.<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/should-you-invest-in-bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Should you Invest in Bitcoin?<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/how-should-i-invest-in-indian-stock-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is Investing in Stock Market a Must?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>What is a Balance Sheet? A balance sheet is a document that provides information about the company&#8217;s financial performance (present &amp; past). It gives a clear distinction between asset and liability. This gives an indication of the company&#8217;s financial health. At any particular point in time. The worth of a company can be found by [&hellip;]<\/p>\n<div class='heateor_sss_sharing_container heateor_sss_vertical_sharing heateor_sss_bottom_sharing' style='width:44px;right: -10px;top: 100px;background-color: Dark Blue' data-heateor-sss-href='https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794'><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F1794\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" style=\"background-color:#0765FE;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box\"><svg style=\"display:block;\" focusable=\"false\" aria-hidden=\"true\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"100%\" height=\"100%\" viewBox=\"0 0 32 32\"><path fill=\"#fff\" d=\"M28 16c0-6.627-5.373-12-12-12S4 9.373 4 16c0 5.628 3.875 10.35 9.101 11.647v-7.98h-2.474V16H13.1v-1.58c0-4.085 1.849-5.978 5.859-5.978.76 0 2.072.15 2.608.298v3.325c-.283-.03-.775-.045-1.386-.045-1.967 0-2.728.745-2.728 2.683V16h3.92l-.673 3.667h-3.247v8.245C23.395 27.195 28 22.135 28 16Z\"><\/path><\/svg><\/span><\/a><a aria-label=\"Twitter\" class=\"heateor_sss_button_twitter\" href=\"http:\/\/twitter.com\/intent\/tweet?text=%20-%20Save%20-%20Invest%20-%20Repeat&url=https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F1794\" title=\"Twitter\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg heateor_sss_s__default heateor_sss_s_twitter\" style=\"background-color:#55acee;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box\"><svg style=\"display:block;\" focusable=\"false\" aria-hidden=\"true\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"100%\" height=\"100%\" viewBox=\"-4 -4 39 39\"><path d=\"M28 8.557a9.913 9.913 0 0 1-2.828.775 4.93 4.93 0 0 0 2.166-2.725 9.738 9.738 0 0 1-3.13 1.194 4.92 4.92 0 0 0-3.593-1.55 4.924 4.924 0 0 0-4.794 6.049c-4.09-.21-7.72-2.17-10.15-5.15a4.942 4.942 0 0 0-.665 2.477c0 1.71.87 3.214 2.19 4.1a4.968 4.968 0 0 1-2.23-.616v.06c0 2.39 1.7 4.38 3.952 4.83-.414.115-.85.174-1.297.174-.318 0-.626-.03-.928-.086a4.935 4.935 0 0 0 4.6 3.42 9.893 9.893 0 0 1-6.114 2.107c-.398 0-.79-.023-1.175-.068a13.953 13.953 0 0 0 7.55 2.213c9.056 0 14.01-7.507 14.01-14.013 0-.213-.005-.426-.015-.637.96-.695 1.795-1.56 2.455-2.55z\" fill=\"#fff\"><\/path><\/svg><\/span><\/a><a aria-label=\"Linkedin\" class=\"heateor_sss_button_linkedin\" href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F1794\" title=\"Linkedin\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg heateor_sss_s__default heateor_sss_s_linkedin\" style=\"background-color:#0077b5;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box\"><svg style=\"display:block;\" focusable=\"false\" aria-hidden=\"true\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"100%\" height=\"100%\" viewBox=\"0 0 32 32\"><path d=\"M6.227 12.61h4.19v13.48h-4.19V12.61zm2.095-6.7a2.43 2.43 0 0 1 0 4.86c-1.344 0-2.428-1.09-2.428-2.43s1.084-2.43 2.428-2.43m4.72 6.7h4.02v1.84h.058c.56-1.058 1.927-2.176 3.965-2.176 4.238 0 5.02 2.792 5.02 6.42v7.395h-4.183v-6.56c0-1.564-.03-3.574-2.178-3.574-2.18 0-2.514 1.7-2.514 3.46v6.668h-4.187V12.61z\" fill=\"#fff\"><\/path><\/svg><\/span><\/a><a aria-label=\"Whatsapp\" class=\"heateor_sss_whatsapp\" href=\"https:\/\/api.whatsapp.com\/send?text=%20-%20Save%20-%20Invest%20-%20Repeat https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F1794\" title=\"Whatsapp\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" style=\"background-color:#55eb4c;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box\"><svg style=\"display:block;\" focusable=\"false\" aria-hidden=\"true\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"100%\" height=\"100%\" viewBox=\"-6 -5 40 40\"><path class=\"heateor_sss_svg_stroke heateor_sss_no_fill\" stroke=\"#fff\" stroke-width=\"2\" fill=\"none\" d=\"M 11.579798566743314 24.396926207859085 A 10 10 0 1 0 6.808479557110079 20.73576436351046\"><\/path><path d=\"M 7 19 l -1 6 l 6 -1\" class=\"heateor_sss_no_fill heateor_sss_svg_stroke\" stroke=\"#fff\" stroke-width=\"2\" fill=\"none\"><\/path><path d=\"M 10 10 q -1 8 8 11 c 5 -1 0 -6 -1 -3 q -4 -3 -5 -5 c 4 -2 -1 -5 -1 -4\" fill=\"#fff\"><\/path><\/svg><\/span><\/a><a aria-label=\"Copy Link\" class=\"heateor_sss_button_copy_link\" title=\"Copy Link\" rel=\"nofollow noopener\" href=\"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794\" onclick=\"event.preventDefault()\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg heateor_sss_s__default heateor_sss_s_copy_link\" style=\"background-color:#ffc112;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box\"><svg style=\"display:block;\" focusable=\"false\" aria-hidden=\"true\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"100%\" height=\"100%\" viewBox=\"-4 -4 40 40\"><path fill=\"#fff\" d=\"M24.412 21.177c0-.36-.126-.665-.377-.917l-2.804-2.804a1.235 1.235 0 0 0-.913-.378c-.377 0-.7.144-.97.43.026.028.11.11.255.25.144.14.24.236.29.29s.117.14.2.256c.087.117.146.232.177.344.03.112.046.236.046.37 0 .36-.126.666-.377.918a1.25 1.25 0 0 1-.918.377 1.4 1.4 0 0 1-.373-.047 1.062 1.062 0 0 1-.345-.175 2.268 2.268 0 0 1-.256-.2 6.815 6.815 0 0 1-.29-.29c-.14-.142-.223-.23-.25-.254-.297.28-.445.607-.445.984 0 .36.126.664.377.916l2.778 2.79c.243.243.548.364.917.364.36 0 .665-.118.917-.35l1.982-1.97c.252-.25.378-.55.378-.9zm-9.477-9.504c0-.36-.126-.665-.377-.917l-2.777-2.79a1.235 1.235 0 0 0-.913-.378c-.35 0-.656.12-.917.364L7.967 9.92c-.254.252-.38.553-.38.903 0 .36.126.665.38.917l2.802 2.804c.242.243.547.364.916.364.377 0 .7-.14.97-.418-.026-.027-.11-.11-.255-.25s-.24-.235-.29-.29a2.675 2.675 0 0 1-.2-.255 1.052 1.052 0 0 1-.176-.344 1.396 1.396 0 0 1-.047-.37c0-.36.126-.662.377-.914.252-.252.557-.377.917-.377.136 0 .26.015.37.046.114.03.23.09.346.175.117.085.202.153.256.2.054.05.15.148.29.29.14.146.222.23.25.258.294-.278.442-.606.442-.983zM27 21.177c0 1.078-.382 1.99-1.146 2.736l-1.982 1.968c-.745.75-1.658 1.12-2.736 1.12-1.087 0-2.004-.38-2.75-1.143l-2.777-2.79c-.75-.747-1.12-1.66-1.12-2.737 0-1.106.392-2.046 1.183-2.818l-1.186-1.185c-.774.79-1.708 1.186-2.805 1.186-1.078 0-1.995-.376-2.75-1.13l-2.803-2.81C5.377 12.82 5 11.903 5 10.826c0-1.08.382-1.993 1.146-2.738L8.128 6.12C8.873 5.372 9.785 5 10.864 5c1.087 0 2.004.382 2.75 1.146l2.777 2.79c.75.747 1.12 1.66 1.12 2.737 0 1.105-.392 2.045-1.183 2.817l1.186 1.186c.774-.79 1.708-1.186 2.805-1.186 1.078 0 1.995.377 2.75 1.132l2.804 2.804c.754.755 1.13 1.672 1.13 2.75z\"\/><\/svg><\/span><\/a><a class=\"heateor_sss_more\" title=\"More\" rel=\"nofollow noopener\" style=\"font-size: 32px!important;border:0;box-shadow:none;display:inline-block!important;font-size:16px;padding:0 4px;vertical-align: middle;display:inline;\" href=\"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794\" onclick=\"event.preventDefault()\"><span class=\"heateor_sss_svg\" style=\"background-color:#ee8e2d;width:40px;height:40px;margin:0;display:inline-block!important;opacity:1;float:left;font-size:32px!important;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;display:inline;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box;\" onclick=\"heateorSssMoreSharingPopup(this, 'https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794', '%20-%20Save%20-%20Invest%20-%20Repeat', '' )\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewBox=\"-.3 0 32 32\" version=\"1.1\" width=\"100%\" height=\"100%\" style=\"display:block;\" xml:space=\"preserve\"><g><path fill=\"#fff\" d=\"M18 14V8h-4v6H8v4h6v6h4v-6h6v-4h-6z\" fill-rule=\"evenodd\"><\/path><\/g><\/svg><\/span><\/a><\/div><div class=\"heateorSssClear\"><\/div><\/div>","protected":false},"author":1,"featured_media":1795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1,3,10],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to read a Balance sheet as an Investor -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to read a Balance sheet as an Investor -\" \/>\n<meta property=\"og:description\" content=\"What is a Balance Sheet? A balance sheet is a document that provides information about the company&#8217;s financial performance (present &amp; past). It gives a clear distinction between asset and liability. This gives an indication of the company&#8217;s financial health. At any particular point in time. The worth of a company can be found by [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/Iam.Mrpai\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-21T10:39:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-22T13:41:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rakshith Pai\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Iam_MrPai\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rakshith Pai\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/\",\"url\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/\",\"name\":\"How to read a Balance sheet as an Investor -\",\"isPartOf\":{\"@id\":\"https:\/\/rakshithpai.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg\",\"datePublished\":\"2021-10-21T10:39:00+00:00\",\"dateModified\":\"2023-12-22T13:41:29+00:00\",\"author\":{\"@id\":\"https:\/\/rakshithpai.com\/#\/schema\/person\/5a10929466befdcdb3013e5341aeb693\"},\"breadcrumb\":{\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage\",\"url\":\"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg\",\"contentUrl\":\"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"How to read a Balance sheet\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/rakshithpai.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to read a Balance sheet as an Investor\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/rakshithpai.com\/#website\",\"url\":\"https:\/\/rakshithpai.com\/\",\"name\":\"\",\"description\":\"Save - Invest - Repeat\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/rakshithpai.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/rakshithpai.com\/#\/schema\/person\/5a10929466befdcdb3013e5341aeb693\",\"name\":\"Rakshith Pai\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/rakshithpai.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g\",\"caption\":\"Rakshith Pai\"},\"description\":\"An Investor, Entrepreneur by profession, and an Economist (Monetarist) by passion. Professional Investor in Equities and other assets. Here to spread the concept of \u201cSane Investing\u201d.\",\"sameAs\":[\"https:\/\/rakshithpai.com\",\"https:\/\/www.facebook.com\/Iam.Mrpai\",\"https:\/\/www.instagram.com\/iam_mrpai\",\"https:\/\/www.linkedin.com\/in\/iam-mrpai\",\"https:\/\/in.pinterest.com\/Iam_MrPai\",\"https:\/\/x.com\/Iam_MrPai\",\"https:\/\/www.youtube.com\/channel\/UC3vfc8G1sysZleCAKbytRFQ?view_as=subscriber\"],\"url\":\"https:\/\/rakshithpai.com\/author\/mrpai27\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to read a Balance sheet as an Investor -","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/","og_locale":"en_US","og_type":"article","og_title":"How to read a Balance sheet as an Investor -","og_description":"What is a Balance Sheet? A balance sheet is a document that provides information about the company&#8217;s financial performance (present &amp; past). It gives a clear distinction between asset and liability. This gives an indication of the company&#8217;s financial health. At any particular point in time. The worth of a company can be found by [&hellip;]","og_url":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/","article_author":"https:\/\/www.facebook.com\/Iam.Mrpai","article_published_time":"2021-10-21T10:39:00+00:00","article_modified_time":"2023-12-22T13:41:29+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg","type":"image\/jpeg"}],"author":"Rakshith Pai","twitter_card":"summary_large_image","twitter_creator":"@Iam_MrPai","twitter_misc":{"Written by":"Rakshith Pai","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/","url":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/","name":"How to read a Balance sheet as an Investor -","isPartOf":{"@id":"https:\/\/rakshithpai.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage"},"image":{"@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage"},"thumbnailUrl":"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg","datePublished":"2021-10-21T10:39:00+00:00","dateModified":"2023-12-22T13:41:29+00:00","author":{"@id":"https:\/\/rakshithpai.com\/#\/schema\/person\/5a10929466befdcdb3013e5341aeb693"},"breadcrumb":{"@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#primaryimage","url":"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg","contentUrl":"https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg","width":1920,"height":1080,"caption":"How to read a Balance sheet"},{"@type":"BreadcrumbList","@id":"https:\/\/rakshithpai.com\/how-to-read-a-balance-sheet-as-an-investor\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/rakshithpai.com\/"},{"@type":"ListItem","position":2,"name":"How to read a Balance sheet as an Investor"}]},{"@type":"WebSite","@id":"https:\/\/rakshithpai.com\/#website","url":"https:\/\/rakshithpai.com\/","name":"","description":"Save - Invest - Repeat","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/rakshithpai.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/rakshithpai.com\/#\/schema\/person\/5a10929466befdcdb3013e5341aeb693","name":"Rakshith Pai","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/rakshithpai.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g","caption":"Rakshith Pai"},"description":"An Investor, Entrepreneur by profession, and an Economist (Monetarist) by passion. Professional Investor in Equities and other assets. Here to spread the concept of \u201cSane Investing\u201d.","sameAs":["https:\/\/rakshithpai.com","https:\/\/www.facebook.com\/Iam.Mrpai","https:\/\/www.instagram.com\/iam_mrpai","https:\/\/www.linkedin.com\/in\/iam-mrpai","https:\/\/in.pinterest.com\/Iam_MrPai","https:\/\/x.com\/Iam_MrPai","https:\/\/www.youtube.com\/channel\/UC3vfc8G1sysZleCAKbytRFQ?view_as=subscriber"],"url":"https:\/\/rakshithpai.com\/author\/mrpai27\/"}]}},"uagb_featured_image_src":{"full":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg",1920,1080,false],"thumbnail":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size-150x150.jpg",150,150,true],"medium":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size-300x169.jpg",300,169,true],"medium_large":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size-768x432.jpg",768,432,true],"large":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size-1536x864.jpg",1536,864,true],"2048x2048":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg",1920,1080,false],"web-stories-poster-portrait":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg",640,360,false],"web-stories-publisher-logo":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg",96,54,false],"web-stories-thumbnail":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/01\/How-to-Read-a-Balance-Sheet-Small-size.jpg",150,84,false]},"uagb_author_info":{"display_name":"Rakshith Pai","author_link":"https:\/\/rakshithpai.com\/author\/mrpai27\/"},"uagb_comment_info":3,"uagb_excerpt":"What is a Balance Sheet? A balance sheet is a document that provides information about the company&#8217;s financial performance (present &amp; past). It gives a clear distinction between asset and liability. This gives an indication of the company&#8217;s financial health. At any particular point in time. The worth of a company can be found by&hellip;","_links":{"self":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794"}],"collection":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/comments?post=1794"}],"version-history":[{"count":10,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794\/revisions"}],"predecessor-version":[{"id":8150,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/1794\/revisions\/8150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/media\/1795"}],"wp:attachment":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/media?parent=1794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/categories?post=1794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/tags?post=1794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}