The company's financial growth is very important to both the company and to your salary requirements. You may not want to crunch the numbers yourself, but you will want to understand the balance sheet, the status of the company's finances at a given date. On the left are the assets, all of the organization's valuables. Current assets are those that the company can convert quickly to cash. On the right are the company's liabilities-what they owe.
Current liabilities are the company's debts due in one year, paid out of current assets.
Net working capital, is a key figure to watch only if you have several years worth of reports to compare. In the current year, net working capital is the difference between current assets and current liabilities. Here is where it may be obvious that the company is cash rich. As a potential participant in the company's employee stock program, you will want to pay attention to the stockholder's equity. Long term debt is important to consider relative to equity.