The Value of the Business

Business Value = Total Assets – (Total Liabilities – Intangible Assets)

  • It shows the total value of the assets of the business minus the
  • Total Liabilities, which in turn have been reduced by Intangible Assets.

Business actions to improve the Index

  • Increase in Total Assets, i.e. the assets of the business without a corresponding increase in liabilities
  • Reduce Total Liabilities through repayment with New Money (AMK)
  • Increase in sales with fewer credit days
  • Reduce expenses with more credit days