Unamortized Goodwill Definition and Explanation

Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

The total estimated value of intangible company assets.

[sc:kit03 ]

Explanation of Unamortized Goodwill

Goodwill is listed on the Balance Sheet, and is the estimated value of intangible assets of a company. Intellectual property such as brand name trademarks, patents, and copyrights are all often listed as Goodwill.

Importance of Unamortized Goodwill

Goodwill is vitally important to companies that rely on conducting business using their intellectual property. Consumer goods companies often have a large amount of assets listed as Goodwill, as they spend aggressively to obtain and guard their patents and trademarks for their popular consumer brands. Goodwill has in the past been used as a way to prop up the value of companies by overestimating the value of their goodwill assets.

Checking the percentage of Goodwill to Assets is a way to keep a watch on the company’s management of Goodwill, and any major changes in Goodwill should be explained in the accompanying notes to the financial statements.