What is a consolidated balance sheet?

A consolidated balance sheet reflects the accounting and the economic situation (in financial statements) of a group of companies, as well as their relationships with third parties or that they have with the companies that make up that same group of companies.

This consolidated balance represents the sum of the balances of the companies that make up the group. It tries to offer a true image of the activities or operations carried out by the group of companies. The objective of this is to be able to easily obtain information related to the group of companies that compose it. It will also allow you to consult information related to the assets and resources used for the manufacture of goods and services, information on the operations carried out, the expenses incurred, the assets that the companies have, etc.

The use of consolidated balance sheet models can be very good. It allows you to see the structure of a company group, how it is working, and whether or not it is convenient to make investments in it. It will also allow us to see where we can improve, proposing viable solutions, with the aim of reducing costs and thus increasing the group's profits (obviously, if we have control).

If we belong to the group of investors or people interested in the company (or in a group of companies, in this case), a consolidated balance sheet is the best option to be able to compare and see results at a larger level. The decisions that are made will be of great value, as they will be more precise and we will obtain good results.

Furthermore, we can say that a consolidated balance sheet is like adata sheet of the situation of a group of companies, being able to help us obtain results such as those mentioned above. It should also be mentioned that it is one more element that helps to show the situation of the group of companies in a very broad way, making it another symbol of the group's transparency.

Leave a Comment