The indicator "net assets" is one of the values indicating the financial stability of the enterprise, and indicates the protection of the interests of creditors. Net assets are the difference between the real value of a company's assets and its debt.
Instructions
Step 1
To calculate the value of net assets, the property of an enterprise means the following. These are non-current assets, which are reflected in section No. 1 of the balance sheet, minus the book value of shares repurchased from shareholders, as well as stocks, cash and other indicators of section No. 2, with the exception of the founders' debt on contributions to the capital of the company. In addition, reserves, if any, are deducted from the value of assets.
Step 2
Liabilities accepted for calculation mean targeted financing and receipts, long-term and short-term liabilities, with the exception of the amount under the item "deferred income".
Step 3
Thus, the difference between the value of the assets and liabilities received will be the net assets of the enterprise.
Step 4
The net asset value reflects the size of the property, which is used to secure the interests of the firm's creditors, but is not used to cover obligations at the moment. This is a property base, which will be used in case of impossibility of securing settlements with creditors. In other words, this is the part of the property that remains at the disposal of the enterprise after the mutual repayment of accounts payable and receivable. That is why this indicator is called "clean", i.e. it is an unencumbered part of the property.
Step 5
The indicator of net assets can be negative. This indicates that the company directs part of the funds borrowed from creditors to cover current costs. This is evidence of its ineffective work, and also speaks of default on obligations to creditors. Therefore, this indicator is used in the analysis of a firm's creditworthiness in the first place.
