The Balance Sheet: Goodwill

open book 100x100 The Balance Sheet: GoodwillTo understand a balance sheet requires that we understand every line item, what each means, and how it can be manipulated. Today we are going to look at the line item for Goodwill.

Goodwill Definition

Goodwill is one of the most commonly misunderstood line items in the balance sheet, I once met a junior investor who thought that Goodwill was the amount of money that the company had donated to charitable organizations. This unfortunately is not the case, goodwill, simply put, is the byproduct of two companies merging.
bullet The Balance Sheet: Goodwill Read More...

Advertisement

Advertise Here
   

See New Articles First

investing feedburner Subscribe
twitter investor Follow on Twitter

Investment Books

Intelligent Investor
Related Article>
munger
Related Article>
dividend investing
Related Article>
sacred cows
Related Article>
buffettmunger
Related Article>

Questrade

$50 Free Trades & Chance to Win the Professional Trader Course

The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable. However, the market forces underlying investment value are subject to sudden and dramatic changes affecting data availability and information may be available which is not reflected in this website. Consequently, the author makes any warranty as to the accuracy or completeness of information, analysis or views contained in this website or their usefulness or suitability in any particular circumstance. This website should not be relied upon for any investment or portfolio assessment or other transaction. Please consult your Investment Executive directly to review any proposed investment or transaction. The author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this website in contravention of this notice. Copyright 2011.