Book Value Of Total Assets Formula

Depreciation periodic reduction in the value of the asset amortized as per standards.

Book value of total assets formula. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value may also be. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.

Total value of the asset value at which the asset is purchased. Net book value nbv refers to a company s assets or how the assets are recorded by the accountant. Or book value shareholder s equity broadly equity share capital reserves and surpluses.

Nbv is calculated using the asset s original cost how much it cost to acquire the asset with the depreciation depletion or amortization of the asset being subtracted from the asset s original cost. Book value total assets total liabilities preferred stock intangible assets. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes.

See how to calculate the market value of a company for more. Other cost include impairment cost and related costs. The book value of a business is found by subtracting its total liabilities from its total assets.

The calculation of book value for an asset is the original cost of the asset minus the accumulated depreciation where accumulated depreciation is the average annual depreciation multiplied by the age of the asset in years. Assets book value formula total value of an asset depreciation other expenses directly related to it. Alternatively book value can be calculated as the sum total of the overall shareholder equity of the company.

Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities. It can be defined as the net asset value of the firm or of the company that can be calculated as total assets less intangible assets that is goodwill patents etc and liabilities. It compares how much more a company is worth when compared to the book value of its assets.