Goodwill to Assets Calculator is a tool that evaluates how much unamortized goodwill the company is recording its current level of assets (Total Assets)
- Goodwill To Assets Ratio:
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- 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%
History
- Jun 10, 2018
- Tool Launched
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