Total Asset Book Value Formula

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.

Total asset book value formula. Depreciation periodic reduction in the value of the asset amortized as per standards. Stock 1 has a high market capitalization relative to its net book value of assets so its price to book ratio is 3 9x. Net fixed assets total fixed assets accumulated depreciation.

The net fixed asset formula is calculated by subtracting all accumulated depreciation and impairments from the total purchase price and improvement cost of all fixed assets reported on the balance sheet. Book value may also be. B p p s t n where.

Note that the book value of the asset can never dip below the salvage value even if the calculated expense that year is large enough to put it below this value. On april 1 2012 company x purchased an equipment for rs. Assets book value formula total value of an asset depreciation other expenses directly related to it.

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. As you can see in the example above all assumptions or hardcodes are in blue font and all formulas are in black. In the example above the asset s book value after 6 years would be 10 000 6000 or 4000.

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. The formula for calculating book value.

Let s solve an example. Total value of the asset value at which the asset is purchased. To arrive at the book value simply subtract the depreciation to date from the cost.