The balance sheet is one of the most important pieces of financial information; it gives a snapshot of a company’s financial status at a certain time. It provides an overview of the company’s equity, assets, and liabilities for a certain fiscal year. The information on the balance sheet is crucial, particularly when the organization is making crucial investment choices. The data on debt financing, the ratio of current assets to current liabilities, and cash availability for daily operations. Each line item on the balance sheet gives investors, the firm, and other financial information consumers such as the government and customers with vital information about the company’s financial health (Flower & Ebbers, 2018). This study of the company’s balance sheet and the accompanying note will clarify its strengths and weaknesses and provide an investing plan. WEX Inc is a publicly listed firm that makes its financial statement available to the public for investment purposes and promotes more competition among businesses. WEX, Inc. offers payment processing and information management services to the commercial and government vehicle fleet industries in the United States. The business engages in worldwide trade with nations such as Canada, South America, Australia, and Asia. This affords the company a solid investment base, and its financial information is vital for investors in these trading areas. The balance sheet analysis will aid in the identification of potential investment options that the firm may use to either sustain or enhance its operations. The current assets of WEX, Inc. increase from the 2019 fiscal year to the 2020 fiscal year. In 2019 and 2020, for instance, the consolidation account received grew from $1,993,329 to $2,861,445 (WEX Inc., 2021). Accounts receivable comprises of the total amount invoiced to and due from customers across all company operations. An rise in accounts receivable indicates that the company participates in more credit services and gives the cardholder more short-term credit. Changing the payment conditions from short-term credit to cardholders increases sales and boosts the trust of company stakeholders. This signifies that WEX Inc. has sufficient operational capital to engage in credit operations. WEX Inc. provides the allowance for account receivable, which comprises mostly of reserves for credit losses and reflects the management’s current estimate of uncollectible amounts on its account receivable, to guarantee successful mobilization of repayment and avoidance of loss from defaulters. The organization generates money via the monthly assessment of financing costs on customers with delinquent amounts. If current assets exceed current liabilities, the business is able to satisfy its current commitments without experiencing financial difficulties. The property and equipment adjustments indicate that the corporation sold some of its assets, resulting in a greater depreciation charge. The corporation evaluates the fair market value of its property based on the current market rate and quoted rates for comparable properties. The changes in the company’s long-term assets have little effect on its present operations. However, it may have an effect on the cash flows in a certain time.
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