Net assets - one of the indicators of the financial stability of an enterprise, its solvency. The higher the net asset value, the more reliable the company is in terms of investing funds from other companies or private investors in it.
Instructions
Step 1
The size of a company's net assets is an indicator of its ability to meet its obligations and pay dividends. In fact, this is the amount of its capital minus all debt obligations. The net asset value is calculated according to the balance sheet data for each reporting period, and allows you to monitor the dynamics of the company as its financial departments and interested investors and partners.
Step 2
So what is included in the concept of "net assets"? Without taking into account debt obligations, all assets of the company are summed up, namely, the values of its balance sheet property. However, not all assets are involved in the calculation: the cost of the company's own shares that were bought out from shareholders is deducted, and the amount of debts of the founders of the authorized capital for making the next installment is not taken into account.
Step 3
From the sum of liabilities (debt obligations) should be excluded the data of the items "Provisions for doubtful debts" and "Deferred income" of the balance sheet.
Step 4
Thus, the general formula for calculating the value of the company's net assets is as follows: Net assets = (Section I + Section II - ZSA - ZUK) - (Section IV + Section V - DBP), where: • Section I - the total for Section I of the balance sheet "Non-current assets"; • Section II - the total result for Section II of the balance sheet "Current assets"; • ZSA - the sum of the company's expenses for the purchase of its own shares for their cancellation or resale; • ZUK - the amount of debts of the founders of the authorized capital on contributions; • Section IV - the summary total for Section IV of the balance sheet "Long-term liabilities"; • Section V - the summary total for Section IV of the balance sheet "Short-term liabilities"; • DBP - deferred income.
Step 5
This formula is universal for various forms of companies: joint stock company, insurance organization, credit institution, limited liability company, investment or mutual fund, etc. However, there are differences, for example, in the timing of reporting: joint stock companies are required to provide an indicator of the value of net assets at the end of each quarter, limited liability companies - a year.
