Tangible net worth

Tangible net worth

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

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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The amendment provides for the permanent removal of the consolidated total debt to consolidate tangible net worth ratio, corporate leverage ratio, and interest coverage ratio financial covenants.
In conjunction with the extension of the termination date, Barrick proposed, and its lenders agreed, to replace the financial covenant that required Barrick to maintain a minimum consolidated tangible net worth (CTNW) of at least $3 billion (as of September 30, 2015, Barricks CTNW was $6 billion) with a new financial covenant that better reflects Barricks 2015 deleveraging measures and future expected debt reduction.
Finally, the amended agreement's initial term will now expire in March 2019, but this may be extended for one year subject to satisfaction of certain customary conditions; the agreement has more favourable financial covenants such as the leverage ratio and minimum tangible net worth requirement; and has additional financial covenants as normally found in similar facilities, including a consolidated secured debt ratio, an unsecured leverage ratio and an unsecured debt service coverage ratio.
The transaction consideration is equal to 125% of tangible net worth and thus brings a core deposit premium of about 3%.
Moreover, Honda Motors will ensure that the subsidiary retains a tangible net worth of at least JPY 10 million and that it has the necessary liquidity to pay off borrowings, the agency added.
60 crore in 2004- 05, while its tangible net worth increased by more than double from Rs 456.
Two more ratios are key: net fixed assets divided by tangible net worth, and total liabilities divided by tangible net worth.
Lundin Mining Corporation (TSX: LUN)(NYSE: LMC)(OMX: LUMI), a Canada-based company that explores for mineral resources like base metals and zinc, has announced that a lending syndicate has extended a waiver for non-compliance with the tangible net worth covenant (the waiver).
Tangible net worth cannot fall below $400 million at any quarter end, and cannot fall by more than 20 per cent in any one quarter or more than 40 per cent in any four quarter period;
Take action to get your agency's financial condition in order by focusing on profitability, liquidity and tangible net worth.
It noted that the agreement between Takeda and TAH states that Takeda will maintain 100% ownership of its subsidiary and will assist it in maintaining a minimum tangible net worth and liquidity.