Thus the gap between assets at fair value and
liabilities at book value have significance.
Not exact matches
All companies have a
book value, so you take a look
at your equity, your assets, your
liabilities, and everything else and then, you know, an accounting firm says, «well, here's your
book value.»
A (t - 1, t) = -LCB- L (t − 1) + L (t)-RCB- / 2 I (t) = Total Interest, month t; L (t) = the
book value of
liabilities at the end of month t; L (t - 1) = the
book value of
liabilities at the end of month t - 1; A (t - 1, t) = average
book value of these
liabilities; d (t) = the number of days in month t.
This is an analysis metric that compares a company's share price with its «
book value» — essentially, its assets minus its
liabilities — and, as you can see, it is now significantly higher than it was
at the peak of the dotcom bubble in early 2000.
Among these are avoiding companies with too much debt; looking for a margin of safety, such as over - 2.0 current ratio (current assets dividend by current
liabilities); and seeking stocks trading
at low price - earnings ratios and low price - to -
book -
value ratios.
Examining only the result of a company's assets minus its
liabilities (its
book value) is akin to looking
at a company as if it was merely a bank account.
Keep in mind,
book value for a company is like looking
at my
book value, all assets and
liabilities, which is certainly important, but it ignores my earnings.
The balance sheet is a summary of assets,
liabilities, and net worth (
book value)
at a specific point in time.
Our net tangible
book value at March 31, 2012 was $ 0.24 per share and was determined by dividing our actual net tangible
book value (total
book value of tangible assets less total
liabilities) on that date, by the number of outstanding shares (1,249,446) on March 31, 2012.
jck said that I should look
at the decrease in
book value in
liabilities over time — that would measure the success of Maiden Lane III over time.