Manufacturing companies offer a good example of how depreciation can affect book value. These companies have to pay huge amounts of money for their equipment, but the resale value for equipment usually goes down faster than a company is required to depreciate it under accounting rules. Making Calculations Practical Now it’s time to use the […]
Monthly Archives: Tháng Tư 2023
Yes, if a company’s liabilities exceed its assets, the BVPS can be negative, signaling potential financial distress. By multiplying the diluted share count of 1.4bn by the corresponding share price for the year, we can calculate the market capitalization for each year. The book value of equity (BVE) is the value of a company’s assets, […]