Net assets = total assets-liabilities = paid-in capital (or share capital)+capital reserve+surplus reserve+undistributed profits (including current year's profits and previous years' undistributed profits)
Negative net assets are generally caused by corporate losses. When undistributed profits (including profits of this year and previous years) are negative and the amount is greater than "paid-in capital+capital reserve+surplus reserve", the net assets are negative. For example, the registered capital of an enterprise is 6.5438+0 million, the capital company is zero, the undistributed profit and this year's profit are-3 million, and the net assets are-2 million.
What is the impact of negative net assets on the company?
If the net assets are negative, be cautious. Even if it is profitable in the current period, we should pay attention to whether it is robbing Peter to pay Paul. It is possible to hang up st directly to see more answers >>
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What does it mean for a listed company to "fall below its net assets"? What is the relationship between net assets and stock price?
Net assets refer to the total assets of listed companies MINUS liabilities divided by total share capital, and the data obtained is net assets per share; When the stock price is lower than the net assets per share, it is lower than the net assets; For example, the net asset per share of a stock is 7 yuan, and the share price was 6 yuan at that time. At this time, it not only fell below the net assets, but also showed that it was worth it (in theory). Whether this stock will rise or not is another matter; Another example: the net assets of share A are-1 share. 20 yuan, whose stock price was 2 yuan at that time, theoretically said that the stock was worthless and still owed 1. 2 yuan.
China's A-share market is not all hungry. There are many people with high stock prices and negative net assets. Some investors are not tired of ST shares, and their risk awareness is not strong or they take risks.
I met a question, why is the net assets negative?
We can't just study this problem from the equation or theory, and it's easy to fall into a rigid thinking.
Accounting belongs to management discipline and is the application of practical business.
According to your understanding, you only consider changes in liabilities and equity. However, when the equity is zero, the enterprise is still operating, not bankrupt, and the loss has already occurred. Naturally, your account reflects that the net asset value continues to decrease to a negative value.
Negative net assets mean insolvency. In other words, you not only lost the owner's equity, but also lost the debt.
Why is net assets negative?
From the equation, we can't see assets ≥ liabilities.
If the net assets are negative, the assets are insolvent.
How can net assets be negative?
First of all, you have to understand what net assets are:
Net assets are assets owned by enterprises and can be freely controlled, that is, owners' equity. It consists of two parts, one part is the capital invested by the enterprise at the beginning, including the premium part, and the other part is created by the enterprise in its operation, including the donated assets.
Net assets are owners' equity. If your company has been in a state of negative profit growth, when the amount of undistributed profit loss you punish is greater than the sum of (paid-in capital+capital reserve+surplus reserve), the net assets are negative.
It's easy to understand. I hope it helps you.
Can the return on equity be negative?
Calculation formula of return on net assets:
Return on net assets = net profit/average net assets * 100%, in which: average net assets = (net assets at the beginning of the year+net assets at the end of the year) /2.
As can be seen from the calculation formula of ROE above, if the net profit is negative, then ROE is negative.
If the net assets of the enterprise are negative, it means ()
C net assets = owner's equity = assets-liabilities The so-called net assets of an enterprise are the owner's equity of the enterprise, and the net profit of this year may be positive, but if the undistributed profit at the beginning of the enterprise is negative and the absolute value is greater than the positive value of the undistributed profit of this year, the net assets of the enterprise are negative. So the D option is incorrect! A, assets can't be negative B. The size of liabilities and owner's equity does not affect the change of owner's equity. Only the comparison of assets and liabilities is the qualitative basis of the owner's equity.
Can the return on equity be negative?
ROE calculation formula: ROE = net profit/average net assets * 100%, where: average net assets = (net assets at the beginning of the year+net assets at the end of the year) /2 As can be seen from the above calculation formula of ROE, if the net profit rate is negative, then ROE is negative.
What does negative net assets per share mean?
Negative net assets per share means that the company is insolvent, that is to say, the total shareholders' equity representing the company's total assets MINUS total liabilities is negative, and the total shareholders' equity divided by the total share capital is the net assets per share.
Net assets per share refers to the ratio of shareholders' equity to total share capital. Its calculation formula is: net assets per share = shareholders' equity/total share capital). This indicator reflects the present value of assets owned by each share. The higher the net assets per share, the more the present value of assets owned by shareholders; The less net assets per share, the less present value of assets owned by shareholders. Generally speaking, the higher the net assets per share, the better.