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. WSP Holdings's goodwill for the quarter that ended in Dec. 2012 was €0.00 Mil.
WSP Holdings Goodwill Historical Data
The historical data trend for WSP Holdings'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.
WSP Holdings (FRA:52WN) 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.
WSP Holdings's Goodwill-to-Asset Ratio for the fiscal year that ended in Dec. 2012 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.
WSP Holdings Goodwill Related Terms
Thank you for viewing the detailed overview of WSP Holdings's Goodwill provided by GuruFocus.com. Please click on the following links to see related term pages.
WSP Holdings Ltd was incorporated in the Cayman Islands on November 16, 2006. It is a holding company, which conducts substantially all of its operations through its subsidiaries in China. The Company is a Chinese manufacturer of seamless Oil Country Tubular Goods (OCTG), including casing, tubing and drill pipes used for oil and natural gas exploration, drilling and extraction. It offers a range of seamless OCTG products to its customers. Its product portfolio could generally be divided into two categories, API products and non-API. API products are products manufactured according to the standards formulated by the American Petroleum Institute and non-API products are products tailor-made to meet its customers' specifications, and that are generally manufactured to a higher standard than API products. The Company's key operating assets included ten threading lines and two drill pipe production lines with an aggregate annual production capacity of approximately 1,394,000 tonnes of seamless OCTG. Its production capacity was approximately 1,430,000 tonnes. It sells its products in both domestic and international markets. In China, it targets sales of its products mainly at Chinese oil companies. It faces competition in the domestic and international markets in which it operates. Many of its competitors are state-owned enterprises which might have greater resources and better brand recognition than it does. The Company's subsidiaries are generally subject to laws and regulations applicable to foreign investments in China and, in particular, laws applicable to wholly foreign-owned enterprises.
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