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Explanation: Net Block is the value of a company’s tangible fixed assets after accounting for depreciation and impairment charges. It represents the net worth of assets like buildings, machinery, and equipment, minus the depreciation allocated over their useful lives. Net Block offers insight into the remaining book value of a company’s long-term assets, indicating its investment in assets expected to generate future benefits.
Example: TCS has a Net Block of 20,515 crore rupees as of FY23. This figure reveals the remaining book value of TCS’s tangible fixed assets after deducting accumulated depreciation and impairment charges. It signifies the extent of TCS’s investment in its long-term assets and its capacity to leverage them for future growth and profitability. Tracking changes in Net Block helps evaluate TCS’s asset management strategies and the health of its fixed asset portfolio over time.
You can view the Net Block value for any company on Radar under Non Current Assets in the Balance Sheet section.