fixed assets
Assets and LOCATION
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.
No, gross profit is not a current asset. Gross profit refers to the difference between revenue and the cost of goods sold, reflecting the profitability of a company's core operations. Current assets, on the other hand, include cash, accounts receivable, inventory, and other assets expected to be converted into cash or used within one year. Gross profit is part of the income statement, while current assets are reported on the balance sheet.
Risk Weighted Assets
Risk-Weighted Assets
Return on Risk-Weighted Assets (RoRWA) is calculated by dividing the net income of a financial institution by its risk-weighted assets. The formula is: RoRWA = Net Income / Risk-Weighted Assets. This metric helps assess how effectively a bank generates profit relative to the risk it takes on through its assets, providing insights into its capital efficiency and risk management. A higher RoRWA indicates better performance relative to the risks assumed.
Risk weighting is a strategy used on occasion in investment pools such as mutual funds. In this situation, investments are weighted according to how much risk they carry. Riskier assets get a higher/lower weighting and less risky assets get a lower/higher weighting.
Risk weighting is a strategy used on occasion in investment pools such as mutual funds. In this situation, investments are weighted according to how much risk they carry. Riskier assets get a higher/lower weighting and less risky assets get a lower/higher weighting.
A bank's assets weighted according to credit risk. Some assets, such as debentures, are assigned a higher risk than others, such as cash. This sort of asset calculation is used in determining the capital requirement for a financial institution, and is regulated by the Federal Reserve Board. Source: investorwords.com
The sum of the weighted dollar values as computed above is called "risk-adjusted assets," and used as the denominator for computation of Asset-Quality (equity-to-asset ratio),... === ===
For banks RWA means - risk-weighted assets are assets with special risks, especially loans to customers and other financial institutions or governments, weighted according to different levels of possible default. As risk is calculated differently for each type of loan
gross npa = sub standard assets +doubtful assets + loss assets
fixed assets
A portfolio is equally-weighted, if equal amounts of money are invested in each of the assets that belong to that portfolio.
as much as they can get The legal requirement for capital is to have no less than 8% of a bank's risk-weighted assets. Assets are loans and reserves. So the amount of loans a bank may make has nothing to do with deposits but is a multiple of its amount of capital.