fixed assets (net) to net worth ratio
Definition
Measure of the solvency of a firm, this ratio indicates the extent to which the owners' cash is frozen in the form of brick and mortar and machinery, and the extent to which funds are available for the firm's operations. A ratio higher than 0.75 indicates that the firm is vulnerable to unexpected events and changes in the business climate. Formula: Net fixed assets ÷ net worth.
fixed assets (net) to net worth ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
fixed assets (net) to net worth ratio appears in the definitions of the following terms:
refinancing risk,
offset account,
acquisition accounting,
aggregate demand,
capital account,
environmental value added,
operating liabilities,
tax loss carry back,
tax loss carry forward,
loan proceeds
and
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