Definition

Net Tangible Assets (NTA)

  • Updated on

Net Tangible Assets (NTA) is expressed as the difference between the total assets of the company and the sum of the intangible assets and the liabilities. The level of the NTA affects the investor’s interest in the following ways-

  • High NTA values indicate easy access to secure additional funding
  • High NTA signifies lesser risk in the investment

Net Tangible Assets = Total Assets - Intabgible Assets - Total Liabilities