Finance / July 19, 2018 / Andi Barnett
Although similar, net equity and net assets differ in one important way. Net assets are defined as total assets minus total liabilities – where inventory is included in the company’s assets. Conversely, the net equity value calculation does not include inventory as a part of the business’s assets. Fluctuating inventory will affect a company’s net assets day-to-day, but will not affect the net equity value in the same manner.
Because every bond and bond fund has a duration, those numbers can be a useful tool that you and your financial professional can use to compare bonds and bond funds as you construct and adjust your investment portfolio.
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