Definition of Goodwill to Assets Ratio

Definition of Goodwill to Assets Ratio

Definition: What is Goodwill to Assets Ratio?

Goodwill to Assets ratio is the financial ratio which is used to compare the intangible assets like brand name, customer list, or unique position in the industry to the company’s total asset in an effect to see if goodwill being recorded properly.

Definition of Goodwill to Assets Ratio

Goodwill in the accounting term used to give way to companies to value their reputation in monetary form.

At the time of determining the value of the company goodwill need to be compared with other assets.

Goodwill to assets ratio tells the relationship between the defensive assets of the company and the power of its namesake.

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