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What does return on assets mean?

Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.


What does the phrase net worth mean?

Net worth is the total assets of a company (or person) minus outside liabilities.


What does return on assets mean to a small company?

"Return on assets, also known as return on investments, is an indication of how well a company uses their holdings to generate a profit. With any company, the higher the return, the better the company is doing."


If the debt equity ratio is 1.0?

it's mean that total assets and total liabilities are equal for example: total assets are 50,000 and total liabilities are 50,000 so the debt ratio is 1


What if tangible net worth of a company is negative?

Nta is calculated as the total assets of the company subtract any intangible assets such as goodwill and trademark, less all liabilities. The nta essentially represents the book value of an organization or individual and may be used to determine the sustainability of the company. However, if the nta of the company is negative this does not mean the company is insolvent. This means the company held more intangible assets than tangible. Also this ratio is good to used when determine whether or not to purchase a stock of a certain company.


What does the letter D mean on an old navy ledger?

The letter "D" on an old navy ledger typically stands for "debit." In accounting, a debit entry represents an increase in assets or a decrease in liabilities or equity. It is used to record transactions that result in an increase in the amount of money owed by a company or individual. The opposite of a debit entry is a credit entry, which represents a decrease in assets or an increase in liabilities or equity.


What does personal wealth mean?

The sum total of a person's tangible and intangible assets.


What does net liabilities mean?

Net Liabilities are its debts after its current assets are sold. A company's current assets are those that will be sold within one year.


Does the word debit mean an increase?

Yes, in the Balance Sheet; Assets are on the Debit side of the ledger, a Debit increase occurs when there is a rise in asset values.


Does debit always mean an increase?

Incase of expenses and assets accounts debit means increase while for income and liabilities accounts debit means decrease.


What happens when you sublease a car and the company that you leased from goes into liquidation?

You will have to make the payments to the company that purchases their assets, it doesn't mean you get a free car.


What is owner's equity?

Owner's equity is considered the source of the company's assets. Owner's equity is also referred to as the book value of the company, which include the reported assets minus the reported liabilities.