Satoshi Nakamoto Blog
Image default

Shareholder Equity vs. Net Tangible Assets: What’s the Difference?

Shareholder Equity vs. Net Tangible Assets: An Overview

Shareholder equity and net tangible assets are listed in a company’s balance sheet and both express the company’s net worth and underlying value. Shareholder equity is calculated including intangible assets, such as goodwill and patents, whereas net tangible assets do not include any intangible assets in its calculation.

Key Takeaways

  • Shareholder equity and net tangible assets are both figures that convey a company’s value.
  • Shareholder equity is the value that a company is financing through investors purchasing common and preferred shares.
  • The big difference is that shareholder equity includes intangible assets, such as goodwill, while net tangible assets does not. 
  • Net tangible assets is the theoretical value of a company’s physical assets.

Shareholder Equity 

Net Tangible Assets

Key Differences

Shareholder Equity vs. Net Tangible Assets Example 

Source link

Related posts

Does success on Jeopardy translate into success as a trader?


Justice Department Settles With Oregon School District Over Immigration-Related Discrimination


Pros and Cons of Acer Chromebook R11


Who Is Ghislaine Maxwell? Jeffrey Epstein’s Alleged Fixer and Ex-girlfriend Is Back Under the Spotlight


How To Invest In The Nikkei 225


Intel Xe graphics cards may target the entry level market first