EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFind Your WayBuy/Sell Daily ProductsIntraday ProductsFAQ
Expert's OpinionsBest StocksInvestingTradingCryptoArtificial Intelligence
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTrading 1 on 1BondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What are Net Tangible Assets?

The total quantity of tangible assets that a corporation holds, less intangible assets and liabilities valued at fair market value, is known as net tangible assets (NTA). Assets that can be touched physically include cash, inventory, and accounts receivable. On the other side, intangible assets are things like equipment and intellectual property that can't be touched directly.

NTA is a crucial indicator of a company's asset position since it enables the management team to examine the tangible assets without taking into account dated or challenging-to-value intangible assets. This can be crucial for businesses that rely largely on intangible assets like intellectual property because they can be challenging to evaluate and are subject to change in value rapidly over time.

By focusing on tangible assets, NTA provides a more accurate picture of a company's financial position, which can be particularly important for investors and creditors. For example, a company with a high amount of intangible assets may appear to be financially strong, but if those assets are difficult to value or rapidly losing value, the company may be in a weaker financial position than it appears.

NTA can also be used to calculate a company's return on assets (ROA), which is a measure of how efficiently the company is using its assets to generate profits. By using NTA in the calculation, the ROA can be more accurate, as it focuses on the assets that are most likely to generate profits in the future.

To calculate NTA, a company must first determine the fair market value of its liabilities, including accounts payable, long-term debt, and loans. This is subtracted from the company's total tangible assets, including cash, inventory, and accounts receivable, to arrive at the NTA.

NTA is particularly important for companies that are undergoing significant changes, such as mergers and acquisitions, or that are in industries with rapidly changing technology or market conditions. In these situations, intangible assets can be particularly difficult to value, and NTA can provide a more accurate picture of a company's financial position.

Net Tangible Assets represent a company's total amount of physical assets less its intangible assets and the fair market value of its liabilities. Tangible assets can include things such as cash, inventory, and accounts receivable, versus liabilities like accounts payable, long-term debt and loans. NTA is an important measurement of a company's asset position because it allows the management team to analyze its tangible asset position without including obsolete or difficult to value intangible assets. NTA can also be used to calculate a company's return on assets, providing a more accurate measure of how efficiently the company is using its assets to generate profits.

Tickeron's Offerings

The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search Engine, Real-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.

Ad is loading...