What is net assets? Return on equity, also known as return on equity, is the percentage of net profit to average shareholders’ equity. This indicator reflects the income level of shareholders’ equity. The higher the indicator value, It means that the higher the return from investment.
The return on net assets is the percentage rate obtained by dividing the company’s after-tax profits by its net assets. It is used to measure the efficiency of the company’s use of its own capital. The above-mentioned company is also used as For example, its after-tax profit is 200 million yuan, its net assets are 1.5 billion yuan, and the return on net assets is 13.33% (i.e. *100%)
The return on net assets can measure the company’s investment in shareholders Capital utilization efficiency. It makes up for the shortcomings of the after-tax profit indicator per share. For example, after the company sends bonus shares to the original shareholders, the earnings per share will decrease, thus creating an illusion among investors that the company's profitability has declined, but in fact, the company's profitability has not changed. It is more appropriate to use the return on net assets to analyze the company's profitability.
If the annual target value of the return on net assets is 2.8. From now to the end of April, the return on equity is 1.6, which is reasonable; the return on equity will increase over time (assuming that net profits are positive every month).
What is net assets?
It is an asset owned by the enterprise and can be used freely, that is, owner's equity. It consists of two parts, one part is the capital invested when the enterprise was founded, including the premium part, and the other part is the assets created by the enterprise during its operations, including the assets received from donations.
Net assets = assets - liabilities, increased or decreased by annual profits and losses
The amount of owner's equity at the end of the period "is not equal to or does not represent" the market value of net assets.
Since it is the market value (usually the current market value), of course it "does not equal or represent" the amount of owner's equity at the end of the period (here is the historical cost).
Net assets are owners' equity, which refers to the economic interests enjoyed by owners in corporate assets. The amount is the balance after assets minus liabilities. Owners' equity includes paid-in capital (or share capital), capital reserves, surplus reserves and undistributed profits, etc.
The calculation formula is: net assets = owners' equity (including paid-in capital or share capital, capital reserves, surplus reserves and undistributed profits, etc.) = total assets - total liabilities.
Net assets are the excess of an enterprise group's assets over its liabilities, that is, the net value of all assets minus all liabilities. Net assets represent the value of property owned by a business group owner (business owner or shareholder) in the business. It includes share capital, reserve fund (surplus reserve fund, capital reserve fund), undistributed profits, etc. Since the net asset value of an enterprise group belongs to shareholders, it is called "shareholders' equity" in accounting terms. It is an important indicator reflecting the operating performance of an enterprise group.
Net assets are affected by the owner's original investment, additional investments, subsequent profits and losses of the business group, and amounts withdrawn from rolled-over profits or investments. In the basic information of this plan, only tangible assets are included in order to reflect the size of shareholders' equity and credit risk of the enterprise group. As for intangible assets such as corporate group reputation and patent rights, they are not included in the calculation for the time being.
Considering that the comprehensive strength evaluation should reflect the actual sustainable and stable development of the enterprise group, the net assets are calculated based on the average value at the end of three years. That is:
Net assets = (net assets at the end of this year, net assets at the end of the previous year, net assets at the end of two years ago) ÷3
The year in the calculation formula is defined as the turnover.
If the entity view of profits is adopted, net assets are equal to shareholders’ equity plus claims; if the ownership view of profits is adopted, net assets are equal to shareholders’ equity.
What is the net worth of shares?
: romaway./Finance/rwlist.asp?RType=12 What is net worth and net worth loss?
Net assets are fixed original assets, and losses are capital losses. Special topic on net assets: What is the signal for a stock to fall below its net assets?
A listed company's "fall below its net assets" This means that the value of the stock price * the total number of shares is lower than the net amount of the company's total assets minus its liabilities. The relationship between net assets and stock price is that the more net assets, the higher the value of the company's assets, and the corresponding higher the stock price, because the true meaning of the stock price is the value of the company's assets.
Net assets are assets owned by the enterprise and can be freely used, that is, owner's equity. The net asset value of an enterprise refers to the net amount of the enterprise's total assets minus its liabilities. It consists of two parts. One part is the capital invested when the enterprise was founded, including the premium part, and the other part is the capital invested by the enterprise during its operation. Assets created in the company, including those donated, belong to the owner's equity. How to understand net assets, tangible net assets and cash net assets?
Net assets = total assets - total liabilities;
Tangible net assets = net assets - goodwill;
Cash net assets = monetary funds in net assets ; What are financial net assets?
The net assets of an enterprise (asset value) refer to the net amount of the enterprise's total assets minus its liabilities, which is equal to the balance of all the assets of the enterprise minus all liabilities. . Belongs to owner's equity.
Net assets are the owners’ equity in the balance sheet. It is an asset owned by the enterprise and can be used freely. It consists of two parts. One part is the capital invested when the enterprise was founded, including premiums. Part of it, the other part is created by the company during its operations, including assets received from donations.
Net assets are a company’s own capital, and for a joint-stock company, net assets are the property owned by shareholders.
Net asset value per share Net asset value per share is the book value of each share. This value reflects the shareholder's actual equity in the company's assets. The formula is: (total assets - total liabilities)/number of common shares. What is the net assets of a bank?
1. The composition of the net assets of the banking industry is the same as that of general enterprises, including paid-in Capital (share capital for listed banks), capital reserve, surplus reserve and undistributed profits.
2. Net assets are assets owned by the enterprise and can be freely used, that is, owner's equity. It consists of two parts, one part is the capital invested when the enterprise was founded, including the premium part, and the other part is the assets created by the enterprise during its operations, including the assets received from donations.
In layman’s terms, it is the assets of a company minus its liabilities.