Non-current Assets to Net Worth

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Non-current assets to net worth ratio isa measure of the extent of a company's investment in low-liquid non-current assets. This ratio is important for comparison analysis because it is less dependent on industry (structure of company assets) than debt ratio or debt-to-equity ratio.

Calculation (formula)

Non-current assets to Net Worth = Non-current assets / Net worth

Norms and Limits

An acceptable Non-current asset to Net Worth ratio is about 1-1.25 and lower, but it is still dependent on the industry. For capital-intensive industries (i.e. companies with a high share of non-current assets against current assets) the ratio may be higher.

Exact Formula in the ReadyRatios Analytic Software

Non-current asset to Net = F1[NoncurrentAssets]/ F1[Equity]

F1 – Statement of financial position (IFRS).

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