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Definition of 'Goodwill To Assets Ratio'
A ratio that measures how much goodwill a company is recording compared to the total level of its assets. The goodwill to assets ratio is useful for monitoring a company's use of goodwill. Although many companies record some form of goodwill, excessive use can lead to problems.
Goodwill to assets is calculated as:
Goodwill To Assets = Unamortized Goodwill / Total Assets
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Investopedia explains 'Goodwill To Assets Ratio'
If this ratio increases, it can mean that the company is recording a proportionately higher amount of goodwill, assuming total assets are remaining constant. By comparing a company's goodwill to assets ratio to those of other companies within the same industry, investors can get a feel for how a company is managing its goodwill. It is generally good to see a company increasing its assets regularly; however, if these increases are coming from intangible assets, such as goodwill, the increases may not be as good.
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Search results for 'Goodwill To Assets Ratio'
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http://www.investopedia.com/articles/basics/06/assetperformance.asp
... Here again, the ROA ratio is best employed ... physical assets are considered intangible
assets, which can ... capitalized expenses) and purchased goodwill (the cost ...
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http://www.investopedia.com/articles/fundamental/03/112603.asp
... First of all, the ratio is really only useful when you are ... rules, book value completely
ignores intangible assets like brand name, goodwill, patents and ...
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http://www.investopedia.com/university/ratios/investment-valuation/ratio2.asp
... Holdings' FY 2005 balance sheet reports goodwill (in millions ... If we deduct these
intangible assets from its ... and the price/book value ratio then skyrockets to ...
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http://www.investopedia.com/articles/stocks/07/book_value.asp
... balance sheet is not upside-down and its business is not broken, a low price/BVPS
ratio can be a ... Intangible assets, like goodwill, are assets that you can ...
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http://www.investopedia.com/university/value-investing/value-investing4.asp
... tax assets; intangible assets; goodwill; property, plant ... because different companies
have different types of assets. ... would not.) One important ratio that value ...
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http://www.investopedia.com/university/ratios/debt/ratio3.asp
... Variations: A conservative variation of this ratio, which is ... equity position by its
intangible assets to arrive ... a large amount of purchased goodwill form heavy ...
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http://www.investopedia.com/exam-guide/cfa-level-1/assets/natural-recource-assets.asp
... Expensing; 8.18 Capitalizing Intangible Assets; 8.19 Depreciation; 8.20 Fixed Asset
Disclosures; ... The Industry Life Cycle; 13.10 The Concentration Ratio and the ...
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http://www.investopedia.com/articles/fundamental-analysis/09/assessing-bank-assets.asp
... Goodwill, ($81,934), ($86,910). ... Other non-qualifying assets, $1,200, $8,245. ... Regulators
establish capital ratio guidelines to control the leverage a bank may safely ...
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http://stocks.investopedia.com/stock-analysis/2009/Regions-Financial-Hit-By-Goodwill-Write-Down-RF0126.aspx
... the fourth quarter, excluding the goodwill charge, discontinued ... contains approximately
$9 billion in assets in these ... fairly strong Tier 1 capital ratio of 10.39 ...
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http://www.investopedia.com/articles/04/031004.asp
... be intangible assets, such as goodwill, patents or ... to use them, see our Ratio Tutorial.)
Conclusion ... companys accounts - covering its assets, liabilities and ...
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