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John Moffat.
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firelion28
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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 equitywhat is it exactly
John Moffat
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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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