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Thanks for the question KateUsually you will only need to analyse the P&L and reconcile the balance sheet. When you analyse the Balance Sheet, it is more for an approach to assess the financial health of the company. These are high level checks such as ratios like Interest Cover (how much cash on hand does a company have to cover its interest payments) or profitability ratios.As an example, if there is too much cash, it might mean the company is being conservative, and they may need to invest those earnings. Also if the company has too much in retained earnings, withholding it without distributing it to shareholders, this may be an indication of tax avoidance of the key investors who want to postpone receiving a dividend.Florian