Tangible Net Worth

Tangible net worth

Total assets minus intangible assets, which include patents and copyrights, and total liabilities.

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Tangible Net Worth

A calculation of a company's value that does not include the value of intangible assets. It is calculated by taking the value of the company's total assets and subtracting the value of intangible assets and total liabilities. Tangible net worth is easier to measure than net worth because physical things are easier to value. On the other hand, tangible net worth may not be accurate, as it excludes the value of things such as patents, copyrights, and brand recognition.

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Tangible Net Worth

What Does Tangible Net Worth Mean?

A measure of the physical worth of a company minus any value derived from intangible assets such as copyrights, patents, and intellectual property. Tangible net worth is calculated by taking a firm's total tangible assets and subtracting the value of all liabilities and intangible assets. Tangible net worth is calculated as shown here:

Investopedia explains Tangible Net Worth

In personal finance, tangible net worth is the sum of all of a person's tangible assets (cash, home, cars, etc.) minus any liabilities that person may have. In the financial markets, tangible net worth represents the amount of physical assets a company has net of its liabilities. Thus, it represents the liquidation proceeds a company would fetch if it shut down and sold off all its assets.

Related Terms:
• Intangible Assets
• Liquidity
• Net Tangible Assets
• Net Worth
• Tangible Asset