The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

Businesses depreciate long-term assets for both tax and accounting purposes. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses. Microsoft Excel ...

Fixed asset turnover is a key metric that helps investors and businesses understand how effectively a company uses its fixed assets to generate revenue. By analyzing this ratio, decision-makers can ...

Price-to-Book or P/B is a useful valuation tool for comparing companies that have negative earnings as these firms cannot be compared using P/E ratio analysis. The P/B ratio is calculated as follows: ...