According to the relevant provisions of the Company Law, during the normal operation of the company, the share capital, capital reserve and surplus reserve cannot be changed at will. Therefore, the adjustment of net assets per share is mainly to adjust undistributed profits.
"Net assets" refers to the total assets of an enterprise minus liabilities, also known as "shareholders' equity" or "owners' equity", that is, the share that investors should enjoy in the total assets of an enterprise.
"Net assets per share" is the average share of net assets that each share should enjoy.
Extended data:
Net assets per share refers to the ratio of shareholders' equity to total shares.
Its calculation formula is: net assets per share = shareholders' equity/total number of shares.
This indicator reflects the present value of assets owned by each share. The higher the net assets per share, the more the value of assets per share owned by shareholders; The less the net assets per share, the less the value of assets per share owned by shareholders. Generally speaking, the higher the net assets per share, the better.
Among various indicators of fundamental analysis, net assets per share is one of the most important reference indicators to judge the intrinsic value of enterprises.
The company's net assets represent the company's own property and the rights and interests of the company's shareholders.
So it is also called shareholders' equity. In accounting calculation, it is equivalent to the balance of total assets MINUS all debts in the balance sheet. The net assets of the company are divided by the total issued share capital to get the net assets per share.
The net asset value per share reflects the net asset value of the company represented by each share and is an important basis for supporting the stock market price.
The greater the net asset value per share, the stronger the wealth represented by each share, and the stronger the ability to create profits and resist the influence of external factors.
Return on net assets is the percentage rate obtained by dividing the company's after-tax profit by the owner's equity, which is used to measure the efficiency of the company in using its own capital.
The reason for adjusting the net assets per share is that the prudence of the current accounting system leads to a big gap between some accounting methods and international practices.
According to the internationally accepted accounting standards, the expenditure of enterprises can be divided into income expenditure and capital expenditure. The benefit of revenue expenditure is only related to this accounting year, while the benefit of capital expenditure is related to several accounting years.
The adjustment of the net assets per share index actually deducts some potential expenses or future expenses in the assets, which is undoubtedly more in line with international practice and provides a valuable reference index for investors in combination with the actual situation of China enterprises.
References:
Baidu Encyclopedia-Net assets per share