Rytvae Consulting · Think Right · Invest Right
Tangible Assets Calculator
Result
Chart
Show formula & working
Total tangible assets = Total assets − Intangible assets − Intangibles under development − Misc. expenditure (− Deferred tax asset, if deducted)
Net tangible fixed assets = Gross block − Accumulated depreciation
Details
How this works
Lenders look at tangible assets because they can be valued and, if needed, realised. Intangibles and deferred charges give little cover.
Net tangible fixed assets feed the fixed asset coverage ratio (FACR) used for term loans.
Frequently asked questions
Should capital work-in-progress be included?
It is tangible, but not yet earning. Lenders often show net fixed assets with and without it.
Why might a deferred tax asset be deducted?
It has value only if future profits arise, so some lenders treat it like an intangible.
Getting accounts ready for a lender?
How figures are classified changes the ratios lenders read. Talk to Rytvae before you submit.