Tangible Net Worth

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DEFINITION of 'Tangible Net Worth'

A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, patents and intellectual property. Tangible net worth is calculated by taking a firm's total assets and subtracting the value of all liabilities and intangible assets.

Tangible Net Worth

INVESTOPEDIA EXPLAINS 'Tangible Net Worth'

In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc) less any liabilities you may have. In the financial markets, tangible net worth represents the amount of physical assets a company has net of its liabilities. Thus, it represents the supposed liquidation proceeds a company would fetch if its operations were to cease immediately and the firm was sold off.

Your personal tangible net worth is also a figure that is worth knowing. Do you know yours? Read How To Calculate Your Tangible Net Worth.

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    The primary difference between personal net worth and business net worth lies in the value assigned to the assets. Tangible ... Read Full Answer >>
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    The Bankruptcy Code, section 507, states that when a corporation is liquidated, creditors are paid in a particular order: ... Read Full Answer >>
  3. What happens to the company stock if a subsidiary gets spun off?

    When a subsidiary gets spun off, the company's stock tends to drop. However, the investor in the stock does not lose any ... Read Full Answer >>
  4. What Book Value Of Equity Per Share (BVPS) ratio indicates a buy signal?

    Book value of equity per share (BVPS) is a ratio used in fundamental analysis to compare the amount of a company's shareholders' ... Read Full Answer >>
  5. What is the effective interest method of amortization?

    The effective interest method is an accounting practice used for discounting a bond. This method is used for bonds sold at ... Read Full Answer >>
  6. Is there a way to include intangible assets in book-to-market ratio calculations?

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    Explaining Tangible Net Worth

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    How To Calculate Your Tangible Net Worth

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