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net assets

RRonny9y ago
Sir what are net assets for ratio analysis - net assets is given as equity+ non current liabilities or total assets- current liabilities whereas in group accounts - net asserts is just equity what is it exactly
John MoffatJohn MoffatTutor9y ago#1
The strict definition of net assets is total assets less total liabilities, which is the same as share capital and reserves (i.e. equity). In ratio analysis we are more concerned with the total long term finance (equity plus long term debt), which is the same as total assets less current liabilities.
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