Capital Balance is the total of a business’ assets minus liabilities. It indicates the overall value of what a company owns and the amount it owes to creditors or other entities. The capital balance is used to measure the financial health of a company, as well as its potential level of profitability. It reflects the return on investments made and serves as a gauge for future investments. As such, capital balance is one of the most important metrics used when evaluating a business’s financial performance and stability.