Which of the following indicates financial health on a balance sheet?

When assessing financial health through a balance sheet, one crucial indicator is whether assets exceed liabilities. This reflects the company's ability to cover its obligations using its resources. When a business has more assets than liabilities, it suggests that the company is in a solid financial position, as it has sufficient resources to pay off its debts and potentially reinvest in its operations.

This situation can instill confidence in investors and creditors, indicating that the business is likely to remain solvent and can generate profits. It also means that the ownership equity, arising from the excess of assets over liabilities, is positive, contributing to the overall stability of the company.

In the context of the other options, high amounts of liabilities alone do not provide a positive indication without context about asset levels; negative retained earnings suggest that a company has accumulated losses over time which can weaken financial standing; and low equity values might imply that the company is underperforming from an owner's standpoint. Each of these scenarios could indicate potential financial distress rather than health. Therefore, the presence of assets exceeding liabilities stands out as a vital indicator of a company's financial health.