[Hot News] [STOCKS] - What do you mean by a company's assets and debts?

A company's asset is the same as any asset we can think about in the real world or daily lives. They are the things that have certain values, things that can give us some sort of future benefits.

Some of the best examples of an asset includes a house, money, a car etc. A house can be called an asset because it can provide us with the tangible benefit of protecting us from the weather and safety in the near future. Money is an asset because it can help us buy something worthwhile for ourselves in the future. Car is an asset because it can help us with our transportation needs.

Thus if we say a company is worth $200 million dollars, we mean what the collective value of this company's assets mean at the time of company analysis. This asset of a company can be its real estate price value, the value of the equipment it owns in its premises, the value of its patents, the value of its buildings it owns etc.

But if this company has also borrowed some money - say for example $180 million through the issue of Bonds or after obtaining loans from the banks. This is then that company's debt. This is also called their liabilities.

[Hot News] [STOCKS] - What do you mean by a company's assets and debts?

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