An important piece of financial data used to assess a company’s value is the amount of its operating assets. These are assets directly related to the core activities of the company, as opposed to assets such as investment income or real estate. This gives a more accurate picture of the company’s performance from operations, rather than just a snapshot of its current net worth.
The basic formula for calculating net operating assets is operating assets minus operating liabilities. A more precise way to figure net operating assets begins with subtracting current liabilities from current assets, which gives you net current assets. Add your non-current assets to this number and then subtract your non-current liabilities to get net operating assets.
Current assets are those that will have useful value during the coming accounting year, such as inventory or accounts receivable. Current liabilities are those due during the coming year. Noncurrent assets are non-core revenue-producing activities, such as investment interest, or assets such as real estate. Noncurrent liabilities are those that will take longer to pay, such as a mortgage amount.
- tadamichi/iStock/Getty Images