Net tangible assets (NTAs) are an entity’s total assets less intangible assets such as goodwill, all liabilities and the par value of preferred stock. Intangible assets also include patents and trademarks. Net tangible assets (NTAs) are calculated as per the following formula:

NTA = total assets – total liabilities – intangible assets – disallowed assets

Where:

• Total assets: on an entity’s balance sheet, these assets consist of both tangible and intangible assets.
• Total liabilities: on an entity’s balance sheet, these liabilities include both current and non-current obligations.
• Intangible assets: on a balance sheet, assets that do not have a physical existence (goodwill, trademarks, and copyrights).
• Disallowed assets include unlisted investments or shares, non-monetary credits (including cryptocurrency), contingent assets, etc.