Pj568

A Plea for Better Balance (Sheets)

Can't buy into your premise that all intangibles are worthless.

Sure intangibles reflect acquisition activity but not all acquisitions are bad. Those with recent acquisitions are more at risk than older one, especially if they purchased financial assets during the last three or four years.

One should first consider it as a fixed asset cost and analyze from there. Yes, investment in fixed assets has an affect on firm structure and intangibles are subject to write downs. There are big differences in structure between service companies, banks and manufacturers. Liquidity, profitability and leverage are more the issue today.