Tangible Net Worth (TNW) is the net value of a company after subtracting all liabilities and intangible assets from total assets.
Tangible Net Worth represents the real, physical net value of a business that can be realized in case of liquidation. It excludes intangible assets like goodwill, patents, trademarks, which may not have immediate resale value.
It is widely used by lenders and investors to assess a company’s financial strength and solvency.
👉 Tangible Net Worth = Total Assets – Intangible Assets – Total Liabilities
"<ul> <li>Total Assets = ₹50 lakh</li> <li>Intangible Assets = ₹10 lakh</li> <li>Liabilities = ₹20 lakh</li> </ul> <p>👉 TNW = 50 – 10 – 20 = ₹20 lakh</p>"