How to calculate the net assets?
The calculation method of net assets is net assets = (net assets at the end of this year+net assets at the end of last year+net assets at the end of the previous two years) 3. Because it needs to fully reflect the reality of the sustained and stable development of enterprise groups, it often needs to be calculated according to the average value at the end of three years. In financial statements, the net assets we see are essentially owners' equity, that is, the economic benefits enjoyed by the owners in the assets of the enterprise, and the amount is the balance of assets MINUS liabilities.
For an enterprise, net assets are the net value of the enterprise, that is, all assets MINUS all liabilities, so it represents the most essential value of a listed company. In our usual operation, we can judge that a listed company is in the growth stage according to the continuous increase of its net assets in recent years, and judge that its current operation is a bit problematic according to the continuous decrease of its net assets in recent years, so it is an important indicator to reflect the operating performance of enterprise groups.
To sum up, this is the algorithm of net assets.