Net Tangible Assets

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DEFINITION of 'Net Tangible Assets'

Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value".

BREAKING DOWN 'Net Tangible Assets'

To calculate a companies net asset value on a per bond, or per share of preferred or common stock, divide the net tangible assets figure by the number of bonds, shares of preferred stock, or shares of common stock.

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RELATED FAQS
  1. What is the difference between shareholder equity and net tangible assets?

    Shareholders' equity and net tangible assets are listed in a company's balance sheet and respectively express the company's ... Read Full Answer >>
  2. How are net tangible assets calculated?

    Net tangible assets are listed on a company's balance sheet and indicate its book value based on the amount of its total ... Read Full Answer >>
  3. Why is the amount of net tangible assets an important benchmark?

    The value of a company's net tangible assets, or book value, is an important benchmark because it reveals the company's worth ... Read Full Answer >>
  4. Which types of coverage ratios should I look at when deciding to invest in a company?

    Investors are less likely to rely on coverage ratios than large debtors such as banks. That said, there is value in understanding ... Read Full Answer >>
  5. What's the difference between book and market value?

    Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
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