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Clean Balance Sheet

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Financial Dictionary

Clean Balance Sheet

Refers to a company whose balance sheet has very little or no debt.

Investopedia Commentary

A company is told to "clean up" its balance sheet if they are exposed to large amounts of debt.

Related Links

Reading The Balance Sheet
Introduction to Fundamental Analysis
Off-Balance-Sheet Entities: The Good, The Bad And The Ugly

See also: Balance Sheet, Debt

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Financial Dictionary

clean balance sheet

A balance sheet with only a small amount of debt in relation to assets.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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