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I have found some companies in the Shares magazine tables that have negative shareholders funds. What does this mean?

I have found some companies in the Shares magazine tables that have negative shareholders funds. What does this mean?

I suspect that it means that intangible assets are greater than the equity. To check this, you will need to go to the ASX web site www.asx.com.au and find the company information. If the company has a web site (most will), you will probably find their annual report on it. Then check the Balance Sheet. If the annual report is not on their web site, phone the company and ask to be sent one.

Another, though less likely, possibility is that the company has written off a huge amount of intangible and/or real assets and has negative shareholders funds. It is possible for it to continue to operate in this condition if it has the support of lenders. I don't think this is the case for the sort of company you gave as examples, though.

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