Intangible asset

balance sheet is a financial statement that shows the assets (what the company owns), liabilities (what the company owes) and equity (stockholders contributions plus retained earnings or losses) of an institution at a given point in time. The balance sheet formula is: Assets = liabilities + shareholder’s equity. The balance sheet formula of a bank is: Bank Assets = Bank liabilities + Bank’s capital The difference between the two is the way assets and liabilities are recorded and on the…

company is equal to the value of its equity, but Market Capitalization is the current market value of its shares (Valuation Techniques Overview, n.d.). Book Value considers tangible assets of a company while calculating the company value, but Market Capitalization is the whole value of both tangible and intangible assets like brand values (Valuation Techniques Overview, n.d.). When the Market Value of a company is more than its Book Value, the buyer is paying more money for something with less…

2011, Medibank Health Solutions was formed incorporating the abilities of Health Services of Australia and, by 2012 it provided health solutions to Australia Defence Force. The funds were utilised for acquisition of tangible assets such as plant and equipment, and intangible assets(software) which are bought or upgraded every year to provide better service to customers and have a competitive edge in the…

patients. The return on assets ration (ROA), is a profitability ratio that measures the net income produced by the total assets during a period by comparing net income to the average total assets. The ROA will help measures how efficiently the organization is managing their assets Running Head: Operating Ratios 3 to produce a profit over a period of time. The ratio will help the organizations management and investor see how well the organization converts their investment in assets into profit,…

term, the uncertainty around the evolution of asset value will dominate the lack of precision in information. Gramlich et al (2001) added that short term debt causes long term debt ratios to shift in the opposite direction, if the current debt is classified as long term. A firm seeking to make a short term investment decision, will more than likely gain short bursts of cash or cash…

1. Explain why total financial assets in the economy must equal total financial liabilities Financial asset is intangible property from a contractual claim such as stocks, bank deposits, and bonds. All of them should be worth to receive monetary value. Financial liability is a company's obligation or debt which a company has to pay back the amount of borrowing money. Total financial assets and total financial should be equal it's because the balance sheet is based on accounting equation. Since…

period. Objectives of preparing a Financial Statements (i) To present a true and fair view of the financial performance (i.e. profit/ loss) of the business. (ii) To present a true and fair view of the financial position (i.e. Assets/Equity and Liabilities) of the business. Characteristics of Financial Statements (i) They are related to past periods and hence are historical documents. (ii) They are expressed in terms of money. (iii) They…

Volkswagen and BMW increased in debt to equity ratio indicates that both company has been aggressive in financing their growth with debt, while BMW able to maintain a steady cash flow over the years, this is not the case for Volkswagen. Overall, Solvency and liquidity analysis are equally important in financial statement analysis. Volkswagen low debt to equity ratio combined with low financial leverage and its ability to meet long-term obligations indicates lower risk of insolvency. On the…

According to Investopedia.com (2015), intrinsic value refers to “[…] the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value […]”. In the specific case given for The Home Depot company, the current value as of today is $146.68 per share, while the intrinsic value based on free cash flow is $83.43. Now, the…

Introduction to Yahoo!: In January 2009, Carol Bartz replaced Jerry Yang as Yahoo!’s CEO. Headquartered in Sunnyvale, California, Yahoo! has offices in more than 25 countries, provinces, or territories. Yahoo! is the second leading global Internet brand and one of the most trafficked Internet destinations worldwide. Together with its owned and operated online services, it also offers its ad offerings and access to Internet users behind Yahoo.! Yahoo! generates revenues by…