Everything about Net operating assets
Net operating assets (NOA) are a business's operating assets minus its operating liabilities. NOA is calculated by reformatting the balance sheet so that operating activities are separated from financing activities. This is done so that the operating performance of the business can be isolated and valued independently of the financing performance. Management is usually not responsible for creating value through financing activities unless the company is in the finance industry, therefore reformatting the balance sheet allows investors to value just the operating activities and hence get a more accurate valuation of the company. One school of thought is that there is no such security as an operating liability. All liabilities are a form of invested capital, and are discretionary, so the concept of net operating assets has no basis because operating assets are not discretionary. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Net operating assetsA 5-minute orientation
- Skim a recent paper: The Effect of Net Interest Margin (NIM), Operating Expenses, Operating Income (BOPO), Loan to Deposit Ratio (LDR), on Return on Assets (ROA) at PT Bank Mayapada Internasional Tbk for the Period of 2014-2023Influential work since 2022
- Pick up a classic book: Intelligence BulletinThe most-reprinted book on the subject
- Read the landmark paper: Information in balance sheets for future stock returns: Evidence from net operating assetsCited 11 times
- Go sideways: Free cash flowA closely related topic
- Go sideways: Return on capitalA closely related topic
📖 Definitions
No dictionary entry for this exact phrase.
🗂️ The subject at a glance
🏆 Landmark papers (most cited)
Information in balance sheets for future stock returns: Evidence from net operating assets
Managerial discretion, net operating assets and the cross-section of stock returns: Evidence from European countries
Analysis of Capital Adequacy Ratio, Operating Expenses Operating Income, Non-Performing Financing, Financing to Deposit Ratio, and Net Operating Margin Return on Assets at Sharia Commercial Banks
Effect of Operating Costs, Sales Volume, Working Capital and Assets Turnover on Net Profit
Decomposition of Profitability into Financing, Investing and Operating Leverages Components and the Overstatement of Return on Net Operating Assets
Determinasi Net Profit Margin, Debt to Assets Ratio, dan Operating Profit Margin terhadap Return On Assets pada PT FKS Food Sejahtera Tbk Periode 2015-2024
Pengaruh Capital Adequacy Ratio dan Financing Deposite to Ratio Terhadap Return on Assets dengan Net Operating Margin Sebagai Variabel Intervening
🆕 Influential since 2022
The Effect of Net Interest Margin (NIM), Operating Expenses, Operating Income (BOPO), Loan to Deposit Ratio (LDR), on Return on Assets (ROA) at PT Bank Mayapada Internasional Tbk for the Period of 2014-2023
Pengaruh Non-Performing Loan (NPL), Equity to Total Assets (EQTA), Operating Expense (OE) terhadap Net Interest Margin (NIM) Bank di Indonesia Periode 2017-2021
📚 Books worth reading
Intelligence BulletinUnited States. War Department. Military Intelligence Service · 1942- 📕How to read a financial reportJohn A. Tracy · 2004
Health care financeJudith J. Baker, R. W. Baker · 2005
History of the Society of Jesus in North AmericaThomas Hughes · 1907
Individual Income TaxationJoni Larson · 2013
The Conspirators HierarchyJohn Coleman · 1992
International Regulation of BankingSimon Gleeson · 2009
J.K. Lasser Pro Separate Account ManagementLarry Chambers · 2003
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
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