Book value意思

"Book value" is a financial term that refers to the value of an asset on a company's balance sheet, based on the cost of the asset minus any depreciation or amortization that has been recorded over the asset's life. In other words, it is the original cost of an asset minus the amount of its value that has been used up over time.

For example, if a company buys a piece of equipment for $10,000 and the equipment is expected to last for 10 years, the company would record a depreciation expense of $1,000 each year for the next 10 years. After 5 years, the book value of the equipment would be $5,000 (the original cost of $10,000 minus 5 years of depreciation at $1,000 per year).

Book value is also sometimes used to refer to the net asset value of a company, which is the total of all its assets minus the total of all its liabilities. This is also known as shareholder equity or net worth.