Goodwill to Assets Calculator

Unamortized Goodwill

Total Assets

Goodwill To Assets Ratio:

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Background Information

What does Goodwill To Assets Ratio mean?: The Goodwill To Assets Ratio is a financial measurement that compares the intangible assets like a brand name, customer list, or unique position in an industry to the total assets of the company in an effect to see if goodwill is being recorded properly.

Formula: Goodwill to Assets Ratio = Goodwill / Total Assets

Example

A company ‘ABC International’ is asking $900 billion. The book value, according to its most recent balance sheet, amounted to $100 billion. Suppose there is no debt to be acquired. Therefore, the amount of goodwill being acquired at this purchase price would be $800 billion.

Applying the formula, Goodwill to Assets Ratio is:-

= $800,000,000,000 / $900,000,000,000
= 88.8%