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Free asset ratio |
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Free asset ratioThe amount by which a company's assets outweigh its liabilities, expressed as a percentage. Example: A company has assets of £100,000 and liabilities of £80,000. To calculate its free asset ratio:Deduct the liabilities from the assets: £100,000 - £80,000 = £20,000Multiple the result by a hundred: 20,000 x 100 = 2,000,000Divide the result by the assets: 2000,000 / 100,000 = 20Free asset ratio in this case is therefore 20%Similar MatchesForeign asset positionForeign asset positionThe amount of assets that residents of a country own abroad. Also used to mean the net foreign asset position. Nonfinancial assetsNonfinancial assetsPhysical assets such as real estate and machinery. Permanent Current AssetsPermanent Current AssetsThe minimum level of current assets that a firm needs to continue operation. Because some level is always maintained, they are called permanent current assets. Risk free assetRisk free assetAn asset whose future normal return is known today with certainty. Diluted net asset valueDiluted net asset valueA method of calculating the net asset value of a company, for example an investment trust, after taking into consideration any outstanding convertible loan stock, warrants or options which are assumed to be exercised by the holders, so increasing the number of shares among which the assets are divided.Example: an investment trust which has assets of £100 million and 10 million shares in issue has a net asset value of £10 per share. If there are also warrants which, if exercised, would increase the number of shares in issue to 11 million, the net asset value is £9.09. Further SuggestionsWasting AssetsReturn on assets (ROA) current assets Asset activity ratios liquid assets Fixed asset Underlying asset Asset management account Current assets Defined asset fund Asset Depreciation Range System tangible assets Noncurrent asset capital asset pricing model Asset allocation mutual fund International Asset Pricing Model (IAPM) Reserve asset capital assets Liquid asset fixed assets Nonmonetary assets and liabilities Asset substitution Operating Assets Asset for asset swap Publicly traded assets |
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