The term net assets refer to the difference between assets and liabilities of the company. This concept is generally used to value the company. It determines the worth of the company, and hence, it is used in various valuation methods. Any amount paid over and above this value is the goodwill of the company. This net assets calculator will help you to calculate the value of the net assets of the company.
Net assets of the company determine the financial health of a company. Positive net assets mean the company is financially sound, while negative net assets indicate the situation of the financial crisis in the company.
The formula for calculating net assets is as follows:
Net Assets = Total Assets – Total Liabilities
The above formula can be simplified as below:
Net Assets = Fixed Assets + Current Assets – (Non-Current Liabilities + Current Liabilities)
Net Assets Calculator
How to Calculate using Calculator?
You simply have to provide the following data into the net assets calculator.
Fixed Assets – Fixed assets are those assets held by the company for a longer duration with the purpose to utilize them for generating revenues. We need to enter the net value of such assets, i.e., the value after deducting the depreciation amount.
We can also use our calculator for calculating net book value – Net Book Value Calculator.
Current Assets – Enter the amount of current assets held by the company. These are the assets that a company holds for a period of less than 12 months. It includes inventory, trade receivables, cash & cash equivalents, and other current assets.
Non-Current Liabilities – Enter the amount of non-current liabilities. These are generally long-term liabilities not maturing within 12 months.
Current Liabilities – These are the short-term liabilities of the company maturing within a period of 12 months. These include trade payables, outstanding payments, etc.