Term · Balance Sheet & Debt
Total assets
In briefTotal assets is the sum of all assets, respectively all liabilities and equity, of a balance sheet. It serves as a reference figure for many other metrics such as the equity ratio, without which those cannot be put in context.
Definition
The sum of all assets, respectively all liabilities and equity, of a balance sheet.
How it is calculated
Formula. Total assets = sum of all assets = sum of all liabilities and equity.
Why it matters for small caps
It serves as the reference figure for almost all other balance-sheet metrics (e.g. the equity ratio) – without it, these cannot be put in context.
Common misreadings
- A growing balance-sheet total is broadly interpreted as company growth, but it may also be pure capital raising without operational progress.
In the process
Frequently asked
What are total assets?
It is the total value of all assets, which at the same time equals the sum of all sources of financing. The asset side and the liabilities-and-equity side match.
What are total assets used for?
They are the basis for many ratio metrics, such as the equity ratio. Without them, such metrics cannot be meaningfully put in context.
Does a growing balance-sheet total always mean growth?
No, it may also stem from pure capital raising without operational progress. A larger balance-sheet volume is not automatically a good sign.
Related terms
Sources
Primary
IFRS Foundation – IFRS 7 Financial Instruments: Disclosures
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-7-financial-instruments-disclosures/
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-7-financial-instruments-disclosures/
Methodology
IFRS Foundation – IFRS Accounting Standards Navigator
https://www.ifrs.org/issued-standards/list-of-standards/
https://www.ifrs.org/issued-standards/list-of-standards/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.