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Nta is calculated as the total assets of the company subtract any intangible assets such as goodwill and trademark, less all liabilities.

The nta essentially represents the book value of an organization or individual and may be used to determine the sustainability of the company.

However, if the nta of the company is negative this does not mean the company is insolvent. This means the company held more intangible assets than tangible. Also this ratio is good to used when determine whether or not to purchase a stock of a certain company.

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Q: What if tangible net worth of a company is negative?
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Related questions

What is the debt to tangible net worth ratio?

There is not an exact formula for the debt to tangible net worth ratio. However, generally speaking, it is an exact ratio of how much debt a company or person is in, compared to how much they are worth (net worth).

How do you calculate tangible net worth?

Tangible net worth is calculated as follows: Book net worth + Subordinated Debt - Assets/Receivables due from affiliates - Intangible assets = Tangible net worth Lenders use it to estimate how much real value is in a businesses book net worth.

What is Net tangible assets how it is calculated?

Net tangible assets are calculated as the total assets of a company minus any intangible assets. Intangible assets are goodwill, patents and trademarks.

Can a profit margin ratio be negative?

A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.

What is return on net worth?

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Is it better to have a positive net worth or a negative net worth?

This is an easy question. Negative net worth means you have less than 0 dollars. It basically means you are in debt. A positive net worth is way better. Hope this helped, sc

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