A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Newport's goodwill for the quarter that ended in Dec. 2015 was $103.8 Mil.
Newport Goodwill Historical Data
The historical data trend for Newport's Goodwill can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.
Newport (NAS:NEWP) Goodwill Explanation
Goodwill to Asset ratio measures how much goodwill a company is recording compared to the total level of its assets.
It is calculated by dividing goodwill by total assets.
Newport's Goodwill-to-Asset Ratio for the fiscal year that ended in Dec. 2015 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
If the goodwill-to-asset ratio increases, it can mean that the company is recording a proportionately higher amount of goodwill, assuming total assets are remaining constant. It is generally good to see a company increasing its assets regularly; however, if these increases are coming from intangible assets, such as goodwill, the increases may not be as good.
Increases in the goodwill-to-asset ratio might suggest that a company has been aggressively acquiring other firms or has seen its tangible assets decrease in value. When a large portion of total assets are attributable to intangible assets (such as goodwill), the company may be at risk of having that portion of its asset base wiped out quickly if it must record any goodwill impairments. Decreases in the goodwill-to-assets ratio suggest that the company has either written down some goodwill or increased its tangible assets.
Asset needs vary from industry to industry. This is why comparing goodwill-to-assets ratios is generally most meaningful among companies within the same industry. By comparing a company's goodwill to assets ratio to those of other companies within the same industry, investors can get a feel for how a company is managing its goodwill.
Newport Goodwill Related Terms
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Newport Corp was established in 1969 as Newport Research Corporation. In 1978, Newport Research Corporation merged into James Dole Corporation, an entity which was incorporated in Nevada in 1938, and the company was renamed Newport Corporation following the merger. The Company is a supplier of advanced technology products and systems to a wide range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. It also provides a broad portfolio of products to customers in these end markets, allowing it to offer them an end-to-end resource for photonics solutions. In January 2013, Company reorganized its operations to create three new operating groups: Photonics Group, Lasers Group and Optics Group. Its Lasers Group is substantially the same as former Lasers Division. Photonics Group is comprised of the photonics products and technologies of former PPT Division and Ophir Division. Optics Group is comprised of the optical components and integrated solutions products and technologies of former PPT Division and Ophir Division. Photonics Group's products and systems are sold to end users in all of target end markets. The products sold by this group include photonics instruments and systems, precision positioning systems and subsystems, vibration isolation systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment. Lasers Group offers a broad portfolio of laser technology products and services to OEM and end-user customers in all of target end markets. Its lasers and laser-based systems include ultrafast lasers and amplifiers, diode-pumped solid-state lasers, high-energy pulsed lasers, tunable lasers, fiber lasers and gas lasers. Optics Group offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors and ruled and holographic diffraction gratings to OEM and end-user customers in target end markets. This business was sold in January 2014. Its competitors include: Coherent, Inc., Sciencetech, Inc., Optometrics Corporation, Corning, Inc., among others. The Company's lasers and laser-based systems are subject to the laser radiation safety regulations of the Radiation Control for Health and Safety Act administered by the Center for Devices and Radiological Health of the United States Food and Drug Administration.
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