Asset Base

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Dictionary Says

Definition of 'Asset Base'

The underlying assets giving value to a company, investment or loan. The asset base is not fixed, it will appreciate or depreciate according to market forces. Lenders use physical assets as a guarantee that at least a portion of money lent can be recouped through the sale of the backed asset in the case that the loan itself cannot be repaid.
Investopedia Says

Investopedia explains 'Asset Base'

The value of a home might increase or decrease over time, affecting the underlying collateral in a mortgage. Similarly, the price of a commodity used as the asset base of derivative can also increase or decrease rapidly, changing the price that investors are willing to pay for it. Examples of asset bases include a home (for a mortgage) and factory equipment (business loan). A derivative would "derive" its value from an underlying asset.
Search results for

'Asset Base'

  • Petrohawk Flies Into The Sunset

    http://stocks.investopedia.com/stock-analysis/2011/Petrohawk-Flies-Into-The-Sunset-BHP-HK-BHI-ROSE-EOG-RRC-BEXP0719.aspx
    ... The company has a relatively concentrated asset base, with pretty much all of its
    significant assets in Texas and Louisiana (an area rich in pipelines). ...

  • A Win-Win For Chespeake And BHP?

    http://stocks.investopedia.com/stock-analysis/2011/A-Win-Win-For-Chespeake-And-BHP-BHP-CHK-XOM-HK-BP-PTR-ECA0224.aspx
    ... Chesapeake is selling this asset base to Australian mining major BHP Billiton for
    $4.75 billion in cash, and the two companies will execute a service agreement ...

  • Financial Statements: Long-Lived Assets | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements7.asp
    ... is an adjusted depreciation that represents the "true" amount that a company needs
    to allocate annually in order to maintain and replace its fixed asset base. ...

  • Devon Energy Sets Up For 2011

    http://stocks.investopedia.com/stock-analysis/2010/Devon-Energy-Sets-Up-For-2011-DVN-CNQ-XEC-EPM1109.aspx
    ... on its last significant asset sale before the end of 2010, setting up Devon Energy
    to focus on the full-scale development of its vast onshore asset base in the ...

  • Fund IQ No.3: Size and Style Compatibility | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp5-fund-size/fund-iq3.asp
    ... 3 relates to a fund manager's recognition that it is prudent to make sure that the
    size of the fund's asset base is compatible with its investing style. ...

  • Mutual Funds: Does Size Really Matter?

    http://www.investopedia.com/articles/mutualfund/03/071603.asp
    ... When we talk about size, we are referring to the total asset base or total amount
    of money that a mutual fund manager must oversee and invest. ...

  • Profitability Indicator Ratios: Return On Assets | Investopedia

    http://www.investopedia.com/university/ratios/profitability-indicator/ratio3.asp
    ... to make a profit. The higher the return, the more efficient management is
    in utilizing its asset base. The ROA ratio is calculated ...

  • Penn Virginia Still A Solid Resource Income Play

    http://stocks.investopedia.com/stock-analysis/2011/Penn-Virginia-Still-A-Solid-Resource-Income-Play-PVR-BTU-ANR-WLT-ARLP-NRP-ACI0804.aspx
    ... Resource Partners (Nasdaq:ARLP) and Natural Resource Partners (NYSE:NRP), but it
    continues to invest capital in building its cash-generating asset base. ...

  • Dissecting Leveraged ETF Returns

    http://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp
    ... index exposure allows the fund to survive a downturn and limits future losses, but
    also locks in trading losses and leaves the fund with a smaller asset base. ...

  • Enerplus Goes Corporate

    http://stocks.investopedia.com/stock-analysis/2010/Enerplus-Goes-Corporate-ERF0923.aspx
    ... Enerplus Resources Fund (NYSE: ERF) is a high-yielding Canadian oil and gas royalty
    trust that is in the midst of changing its asset base toward more of a ...

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