What document shows that a business has been financially stable over the last three financial years?

The balance sheet is the document that provides a snapshot of a business's financial position at a specific point in time. It illustrates the company's assets, liabilities, and equity, allowing stakeholders to assess the financial stability of the business over the last three years. By examining the balance sheets from each of those years, one can evaluate trends in the company's financial health, such as whether its assets are increasing and how it is managing its debts.

While other financial documents, such as the income statement and cash flow statement, primarily provide insights into profitability and cash movements, respectively, they do not convey the overall financial standing of the business as effectively as the balance sheet. The income statement focuses on revenues and expenses within a specific period, and the cash flow statement tracks the flow of cash in and out of the business but may not reflect outstanding debts or equity positions as directly as the balance sheet does. Therefore, the balance sheet is the most appropriate document for assessing a company's financial stability over multiple years.