Strong accounting practices are key to managing your small business. A major part of accounting is understanding a balance sheet, the part of your financial statements that show your net worth. To ...

Two important financial ratios used for analysis by investors and creditors include the total asset turnover ratio and the profit margin. Total asset ratio falls under the category of asset ...

An asset constitutes anything that holds monetary value, whether current or future, to a person or organization. Businesses, governments and non-profits all own assets. So do many people. An asset is ...

One key metric that offers valuable insights into a company’s financial health is the return on average assets (ROAA). This financial ratio measures how effectively a company uses its assets to ...

Assets represent any items owned by an individual or a business that have the potential to grow in value. Defining assets isn’t easy, as “any item” is a broad category that encompasses myriad items ...

An asset is anything that an individual or business owns that has monetary value and can be sold for cash. There are four main types of assets: liquid, illiquid, tangible, and intangible. Knowing what ...

Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...

Net asset value, or NAV, represents the value of an investment fund and is calculated by adding the total value of the fund’s assets and subtracting its liabilities. Mutual funds and ETFs use NAV to ...