Negative equity occurs when a company's total liabilities surpass its total assets. In simpler terms, it indicates that the company owes more than it owns. Negative equity can signal financial distress and might imply that a business is insolvent, meaning it can't meet its financial obligations when they come due. It's a red flag for investors, creditors, and other stakeholders as it suggests that the firm might be at risk of bankruptcy if it cannot raise enough funds or assets to cover its liabilities. However, short-term occurrences of negative equity might result from business cycles or temporary downturns, but prolonged periods are concerning.

Accumulated depreciation is a contra-asset account found on the balance sheet that represents the total amount of depreciation expenses taken against a fixed asset since it was acquired. It's subtracted from the original purchase price of the fixed asset, showing the asset's book value or carrying amount. The role of accumulated depreciation is to reflect the wear and tear or loss of value of a tangible fixed asset over time. As the asset is used in business operations, its value declines, and this decrease is captured by depreciation. By deducting accumulated depreciation from the asset's initial cost, companies provide a more realistic view of the asset's worth.

Long-term liabilities, also known as non-current liabilities, are obligations that a company expects to pay after one year or beyond its operating cycle, whichever is longer. Examples include bonds payable, mortgages, or long-term lease obligations. These liabilities finance long-term projects or asset acquisition. Current liabilities are obligations expected to be settled within a year or within the company's operating cycle. They include accounts payable, short-term loans, and other short-term financial obligations. Understanding the proportion of long-term to current liabilities provides insight into a company's debt maturity profile and liquidity risk.

Tangible fixed assets are physical and measurable assets that undergo wear and tear over time. These assets include machinery, buildings, land, and vehicles. They can be depreciated over their useful life, meaning their value can decrease over time due to factors like physical deterioration or obsolescence. Intangible fixed assets, on the other hand, lack a physical presence. They include assets like trademarks, copyrights, patents, and goodwill. Although they can't be touched, intangible assets can be immensely valuable and often provide a competitive edge. They are typically amortised over their useful lifespan.

Working capital is a financial metric that measures a company's operational liquidity and short-term financial health. It's calculated as the difference between current assets and current liabilities on the balance sheet. A positive working capital indicates that the company has enough short-term assets to cover its short-term liabilities. Conversely, a negative working capital suggests potential liquidity problems, implying the firm might struggle to meet its obligations due within a year. By analysing components of the balance sheet, particularly current assets and current liabilities, working capital gives insights into the efficiency and short-term financial stability of a business.