Goodwill
Goodwill recognized from acquisitions, net of impairment.
Worked example · a round-number company
Goodwill$1.0B÷Total assets$10.0B=Share of assets10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Shows part of the premium paid for acquired businesses.
Keep in mind
- Goodwill is not a liquid asset and can be impaired.