Tangible equity ratio (Tangible equity)
Equity after removing goodwill and intangibles, as a share of assets on the same basis.
It is the cushion that survives writing off everything that was paid for rather than built.
How it is computed here
(Equity - intangibles) / (assets - intangibles)
Measured over the latest complete fiscal year, as filed. Filed under health. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Severe on genuine intangible value: a software company's real assets are invisible here by construction.
- Withheld when tangible assets are zero or negative.
Questions
How is tangible equity ratio calculated?
(Equity - intangibles) / (assets - intangibles). Measured over the latest complete fiscal year, as filed.
What does tangible equity ratio tell a value investor?
It is the cushion that survives writing off everything that was paid for rather than built.
When does tangible equity ratio mislead?
Severe on genuine intangible value: a software company's real assets are invisible here by construction. Withheld when tangible assets are zero or negative.