> Net Tangible Capital is Net Working Capital + PPE, meaning Current Assets - Current Liabilities + Plant Property and Equipment

Wouldn't it be Net Tangible Capital = Total Assets - Intangible Assets - Total Liabilities instead?

According to Investopedia: "To calculate a company's net tangible assets, subtract its liabilities, par value of preferred shares, and any intangible assets, such as goodwill, patents, and trademarks from its total assets."

There are so many definitions out there - I like Greenblatt's reasoning on "buy quality companies on the cheap" and he uses this formula - https://www.stockopedia.com/ratios/return-on-capital-greenblatt-ttm-805/. Arguably the formula you used would give them even larger ROC. I'm not looking for a precise number. If it was 10% I'd pass. Thanks for reading!

Sorry it took so long to respond, but thanks a ton for the shout out and link. I appreciate it!

> Net Tangible Capital is Net Working Capital + PPE, meaning Current Assets - Current Liabilities + Plant Property and Equipment

Wouldn't it be Net Tangible Capital = Total Assets - Intangible Assets - Total Liabilities instead?

According to Investopedia: "To calculate a company's net tangible assets, subtract its liabilities, par value of preferred shares, and any intangible assets, such as goodwill, patents, and trademarks from its total assets."

https://www.investopedia.com/terms/n/nettangibleassets.asp

There are so many definitions out there - I like Greenblatt's reasoning on "buy quality companies on the cheap" and he uses this formula - https://www.stockopedia.com/ratios/return-on-capital-greenblatt-ttm-805/. Arguably the formula you used would give them even larger ROC. I'm not looking for a precise number. If it was 10% I'd pass. Thanks for reading!