Net Current Asset Value Per Share (NCAVPS)

Search Dictionary

Definition of 'Net Current Asset Value Per Share (NCAVPS)'

Net current asset value per share (NCAVPS) is a financial ratio that measures a company's ability to pay its short-term liabilities with its current assets. It is calculated by dividing a company's net current assets by its number of shares outstanding.

NCAVPS is a useful metric for investors because it provides a quick and easy way to assess a company's financial health. A high NCAVPS indicates that a company has more than enough current assets to cover its short-term liabilities, while a low NCAVPS suggests that a company may be struggling to meet its financial obligations.

NCAVPS is also used by analysts to compare companies within the same industry. A company with a higher NCAVPS than its peers is generally considered to be in a stronger financial position.

However, it is important to note that NCAVPS is only one of many factors that investors should consider when evaluating a company. Other important factors include a company's debt-to-equity ratio, earnings per share, and return on equity.

Here are some additional points to keep in mind about NCAVPS:

* NCAVPS is a static measure, meaning that it does not take into account a company's future prospects.
* NCAVPS can be manipulated by a company's management team through the use of accounting techniques.
* NCAVPS is not a measure of a company's profitability.

Overall, NCAVPS is a useful metric for investors, but it should be used in conjunction with other financial ratios to get a more complete picture of a company's financial health.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.