Financial position definition
/What is Financial Position?
Financial position is the current balances of the recorded assets, liabilities, and equity accounts of an organization. This information is recorded in the balance sheet, which is one of the financial statements. The financial position of an organization is stated in the balance sheet as of the date noted in the header of the report.
More broadly, the concept can refer to the financial condition of a business, which is derived by examining and comparing the information in its financial statements. This typically means calculating a number of financial ratios from the presented information, examining results on a trend line, and comparing results to those of other entities in the same industry. A business with a strong financial position is considered to be one that has a minimal debt load and large cash and investment reserves.