Tangible Net Worth definition: Copy, customize, and use instantly
Introduction
The term "Tangible Net Worth" refers to the value of a company’s assets, excluding intangible assets such as goodwill, patents, and trademarks. This figure is crucial for assessing a company’s financial strength, especially in loan agreements and covenants, as it reflects the actual, physical assets that can be liquidated to cover obligations.
Below are various examples of how "Tangible Net Worth" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Tangible Net Worth" for loan agreements
This definition ties "Tangible Net Worth" to loan agreements.
"Tangible Net Worth" means the value of a company’s total assets, less any liabilities, excluding intangible assets such as goodwill, intellectual property, and trademarks, as of the most recent financial statement.
Definition of "Tangible Net Worth" for financial covenants
This definition connects "Tangible Net Worth" to financial covenants.
"Tangible Net Worth" refers to the total assets of a company, minus its liabilities and intangible assets, that must meet a minimum threshold as part of the financial covenants outlined in this agreement.
Definition of "Tangible Net Worth" for corporate restructuring
This definition links "Tangible Net Worth" to corporate restructuring.
"Tangible Net Worth" means the value of a company’s assets, excluding intangible assets such as patents, goodwill, and customer lists, used to assess the company’s ability to absorb debt during corporate restructuring.
Definition of "Tangible Net Worth" for investment analysis
This definition applies "Tangible Net Worth" to investment analysis.
"Tangible Net Worth" refers to the value of a company's tangible assets (such as real property, equipment, and inventory), less its liabilities, used by investors to assess the company’s financial stability and asset-backed value.
Definition of "Tangible Net Worth" for credit agreements
This definition connects "Tangible Net Worth" to credit agreements.
"Tangible Net Worth" means the total value of a borrower’s tangible assets, minus liabilities and excluding intangible assets, used to evaluate creditworthiness and as a benchmark in credit agreements.
Definition of "Tangible Net Worth" for loan default provisions
This definition ties "Tangible Net Worth" to loan default provisions.
"Tangible Net Worth" refers to the value of a borrower’s tangible assets after deducting liabilities, used to determine if the borrower defaults under loan covenants based on their financial health.
Definition of "Tangible Net Worth" for M&A transactions
This definition links "Tangible Net Worth" to mergers and acquisitions.
"Tangible Net Worth" means the value of a company’s tangible assets, less its liabilities, used to assess the financial standing of the company during a merger or acquisition transaction.
Definition of "Tangible Net Worth" for shareholder equity
This definition connects "Tangible Net Worth" to shareholder equity.
"Tangible Net Worth" refers to the total value of a company’s tangible assets minus its liabilities, representing the portion of shareholder equity that is backed by tangible assets.
Definition of "Tangible Net Worth" for secured transactions
This definition applies "Tangible Net Worth" to secured transactions.
"Tangible Net Worth" means the value of a company’s physical assets, excluding intangible assets, and is used to determine the collateral value for secured transactions and financing.
Definition of "Tangible Net Worth" for debt covenants
This definition links "Tangible Net Worth" to debt covenants.
"Tangible Net Worth" refers to the value of a borrower’s tangible assets, less liabilities, and is used to monitor compliance with debt covenants that require the borrower to maintain a minimum threshold.
Definition of "Tangible Net Worth" for bankruptcy filings
This definition connects "Tangible Net Worth" to bankruptcy filings.
"Tangible Net Worth" means the value of a company’s tangible assets minus its liabilities, which may be used to assess the company’s ability to meet its obligations in the event of a bankruptcy filing.
Definition of "Tangible Net Worth" for lease agreements
This definition links "Tangible Net Worth" to lease agreements.
"Tangible Net Worth" refers to the total value of a company’s tangible assets, used by landlords or lessors as a financial qualification for leasing property to the company.
Definition of "Tangible Net Worth" for private equity investments
This definition ties "Tangible Net Worth" to private equity investments.
"Tangible Net Worth" means the value of a company’s tangible assets, less its liabilities, which private equity investors use to assess the underlying asset value and risk in an investment.
Definition of "Tangible Net Worth" for venture capital funding
This definition connects "Tangible Net Worth" to venture capital funding.
"Tangible Net Worth" refers to the tangible asset base of a company, excluding intangible assets like goodwill, and is used by venture capital firms to determine the company’s financial health before funding.
Definition of "Tangible Net Worth" for shareholder protection
This definition links "Tangible Net Worth" to shareholder protection.
"Tangible Net Worth" means the company’s net worth based on tangible assets, used to protect shareholder investments by ensuring the company has sufficient physical assets to cover liabilities.
Definition of "Tangible Net Worth" for profitability analysis
This definition ties "Tangible Net Worth" to profitability analysis.
"Tangible Net Worth" refers to the value of a company’s tangible assets minus liabilities, used to assess the profitability and operational effectiveness of the company.
Definition of "Tangible Net Worth" for fixed asset valuation
This definition connects "Tangible Net Worth" to fixed asset valuation.
"Tangible Net Worth" means the value of a company’s fixed assets, such as machinery, equipment, and real property, minus its liabilities, used for assessing the company’s asset-backed financial health.
Definition of "Tangible Net Worth" for collateral valuation
This definition links "Tangible Net Worth" to collateral valuation.
"Tangible Net Worth" refers to the value of the company’s tangible assets, minus liabilities, that are available for use as collateral in a secured lending arrangement.
Definition of "Tangible Net Worth" for tax purposes
This definition ties "Tangible Net Worth" to tax purposes.
"Tangible Net Worth" means the value of a company’s tangible assets, less its liabilities, and is used for tax reporting or compliance to assess the financial stability of a business.
Definition of "Tangible Net Worth" for liquidity assessments
This definition connects "Tangible Net Worth" to liquidity assessments.
"Tangible Net Worth" refers to the value of tangible assets minus liabilities and is used to evaluate the liquidity position of a company in relation to its outstanding obligations.
Definition of "Tangible Net Worth" for creditworthiness
This definition links "Tangible Net Worth" to creditworthiness.
"Tangible Net Worth" means the value of a company’s tangible assets after liabilities, used as a measure of creditworthiness in assessing a company’s ability to repay debt.
Definition of "Tangible Net Worth" for debt-to-equity ratio calculations
This definition ties "Tangible Net Worth" to debt-to-equity ratio calculations.
"Tangible Net Worth" refers to the total value of tangible assets, less liabilities, and is used to calculate the debt-to-equity ratio, an important indicator of a company’s leverage.
Definition of "Tangible Net Worth" for financial reporting
This definition connects "Tangible Net Worth" to financial reporting.
"Tangible Net Worth" refers to the value of tangible assets less liabilities, and is used in financial statements to provide a clearer picture of a company’s asset-backed equity.
Definition of "Tangible Net Worth" for solvency testing
This definition applies "Tangible Net Worth" to solvency testing.
"Tangible Net Worth" means the total value of a company’s tangible assets, less its liabilities, used to test the company’s solvency in accordance with relevant laws and regulations.
Definition of "Tangible Net Worth" for asset-backed securities
This definition links "Tangible Net Worth" to asset-backed securities.
"Tangible Net Worth" refers to the value of a company’s tangible assets minus liabilities, which is used to assess the underlying value of asset-backed securities.
Definition of "Tangible Net Worth" for equity funding
This definition ties "Tangible Net Worth" to equity funding.
"Tangible Net Worth" means the value of tangible assets less liabilities and is used to assess the equity backing of a company for the purposes of raising additional equity funding.
Definition of "Tangible Net Worth" for financial distress assessments
This definition connects "Tangible Net Worth" to financial distress assessments.
"Tangible Net Worth" refers to the value of a company’s tangible assets, less its liabilities, used to assess the company’s ability to weather financial distress and continue operations.
Definition of "Tangible Net Worth" for corporate guarantees
This definition links "Tangible Net Worth" to corporate guarantees.
"Tangible Net Worth" means the value of a company’s tangible assets, minus liabilities, used as a metric for assessing the viability of providing corporate guarantees for third-party obligations.
Definition of "Tangible Net Worth" for leveraged buyouts
This definition applies "Tangible Net Worth" to leveraged buyouts.
"Tangible Net Worth" refers to the value of a company’s tangible assets less liabilities, which is used in the analysis and structuring of leveraged buyouts to assess the company’s ability to support new debt.
Definition of "Tangible Net Worth" for asset disposition
This definition connects "Tangible Net Worth" to asset disposition.
"Tangible Net Worth" means the value of a company’s tangible assets, less liabilities, used to assess the financial impact of selling or disposing of assets.
Definition of "Tangible Net Worth" for solvency calculations
This definition ties "Tangible Net Worth" to solvency calculations.
"Tangible Net Worth" refers to the value of a company’s tangible assets after deducting liabilities, used in solvency calculations to ensure the company can meet its obligations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.