Goodwill To Assets Ratio

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

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.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Debt ratio — is a financial ratio that indicates the percentage of a company s assets that are provided via debt. It is the ratio of total debt (the sum of current liabilities and long term liabilities) and total assets (the sum of current assets, fixed… …   Wikipedia

  • P/B ratio — The price to book ratio, or P/B ratio, is a financial ratio used to compare a company s book value to its current market price. Book value is an accounting term denoting the portion of the company held by the shareholders; in other words, the… …   Wikipedia

  • Financial ratio — Corporate finance …   Wikipedia

  • Tangible Common Equity Ratio - TCE — A ratio used to determine how much losses a bank can take before shareholder equity is wiped out. The Tangible Common Equity (TCE) ratio is calculated by taking the value of the company s total equity and subtracting intangible assets, goodwill… …   Investment dictionary

  • Price to Tangible Book Value - PTBV — A valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company s balance sheet. The tangible book value number is equal to the company s total book value less the value of any… …   Investment dictionary

  • ДОСТАТОЧНОСТЬ СОБСТВЕННОГО КАПИТАЛА — CAPITAL ADEQUACYСтруктура капитала банков включает в себя собственный капитал и долг. Банки это фин. институты, имеющие большую долю заемных средств, что может сказаться на их жизнеспособности. Более того, банки имеют значительные потенциальные… …   Энциклопедия банковского дела и финансов

  • ЧИСТЫЕ РЕАЛЬНЫЕ АКТИВЫ — (net tangible assets) Реальные (материальные) активы (tangible assets) организации минус ее текущие обязательства. При анализе положения дел в организации ее чистые реальные активы свидетельствуют о ее силе с точки зрения платежеспособности без… …   Словарь бизнес-терминов

  • ЧИСТЫЕ МАТЕРИАЛЬНЫЕ/ОСЯЗАЕМЫЕ АКТИВЫ — (net tangible assets) Материальные/осязаемые активы (tangible assets) организации минус ее текущие обязательства. При анализе положения дел в организации ее чистые материальные/осязаемые активы свидетельствуют о ее силе с точки зрения… …   Финансовый словарь

  • чистые материальные — осязаемые активы Материальные/осязаемые активы (tangible assets) организации минус ее текущие обязательства. При анализе положения дел в организации ее чистые материальные/осязаемые активы свидетельствуют о ее силе с точки зрения… …   Справочник технического переводчика

  • japan — japanner, n. /jeuh pan /, n., adj., v., japanned, japanning. n. 1. any of various hard, durable, black varnishes, originally from Japan, for coating wood, metal, or other surfaces. 2. work varnished and figured in the Japanese manner. 3. Japans,… …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”