Fixed assets are those assets that cannot be quickly business email list converted into cash, including buildings, production equipment and land. These are often collectively referred to as property, plant and equipment.
Intangible assets are financial representations of intangible things that have monetary value, including patents, brands, intellectual property (knowledge held), and goodwill. The value of intangible assets is difficult to measure, but companies and accounting authorities are looking for ways to measure them.
Liabilities usually represent the way assets are raised. When your company has debt, it needs to be repaid at some point, either in the near term or a long time in the future, so it represents a future cash outflow. Just like assets, there are two types of liabilities: current liabilities and long-term liabilities.
Current liabilities are those debts that must be repaid within one year, including operating expenses, supplies, and materials to be paid. Current liabilities may also include short-term loans, interest on the loan, the portion of the loan that needs to be repaid within a year, and taxes due.
Long-term liabilities (also known as long-term debt) are debts that do not need to be repaid within a year. Many companies use long-term debt (or issue bonds) for capital expansion or to finance business activities. This is what the term "leveraged" describes. When a company is "heavyly indebted", that means it has a lot of debt - owes a lot of money to other people (I'll give a simple example).
Net working capital is a derivative financial theory and term you often hear. Subtract current liabilities from current assets and the balance is net working capital. It is called "working" capital, which means it is "working" rather than "working" because it is an asset of the owner of the company, involved in the day-to-day running of the company, and if the company ceases operations, these assets can be Filed within one year, payment of outstanding documents.
Net working capital is a sensitive topic for many finance team members, as its application and use need to be carefully balanced. If the net working capital is too low, the company cannot pay its monthly financial expenses, such as payroll and rent; however, if it is too much, it may indicate that something is wrong within the company, such as too much inventory, late payment by customers or even a bad debts. All of the above issues should be analyzed and dealt with immediately.
Owner's equity refers to the assets that truly belong to the owners or shareholders of the company, also known as net asset value. It is the difference between assets and liabilities and represents the "book value" of the company's ownership.