Net Tangible Assets


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".


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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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  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. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>

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