The balance sheet shows the financial position of a company as at a specific date. It shows the assets that the company has, the liabilities that it has, the capital contribution made by the shareholders and any reserve that has been accumulated over the years. It is one of the most useful statements as it allows you to show the assets that the company has at its disposals, if the assets are exceed the liabilities.
You can also assess if the company will be able to meet its obligations as they fall due (if the current assets exceed the current liabilities), the leverage of the company and other important information.