Net Fixed Assets

Net Fixed Assets is used in the ROIC calculation used in the Greenblatt Magic Formula. It calculates the amount of cash needed to purchase fixed assets necessary to conduct its business, such as real estate, plant and equipment. Greenblatt removes intangible assets, and specifically goodwill, which usually arises from an acquisition of a company. These are historical costs and should this does not need to be constantly replaced.

Net Fixed Assets = Net Property, Plant & Equipment