Goodwill to assets ratio
What is Goodwill to assets ratio?
This parameter shows the ratio of Goodwill compared to the total level of a company's assets. Using this relationship, you can see how much of a company’s intangible assets are occupied by their total number.
Formula:
Goodwill / Total assets
What does Goodwill to assets ratio mean?
A small value will indicate a large number of tangible assets that a company can sell for money. A large value may indicate a large number of intangible assets that are more difficult to sell for cash value in the event of bankruptcy.