The Berkeley Group is a large British building company focusing on new housing estate developments.

The assets of Berkeley Group include not only buildings and property (tangible assets), but also the value of its brand and skilled workforce (intangible assets). In 2018, the company had £399.8 million in tangible non-current assets and £17.2 million in intangible non-current assets. Current assets amounted to £4,359.5 million and current liabilities (liabilities due within one year) were £1,725.9 million. Berkeley Group had £430.6 million in non-current liabilities. A statement of financial position (balance sheet) for the company is presented below.

£ million £ million Tangible assets 399.8 Non-current liabilities 430.6 Intangible assets 17.2 Current liabilities 1,725.9 Non-current assets 417.0 Equity 2,620.0 Current assets 4,359.5 Total assets 4,776.5 Total equity and liabilities 4,776.5 Net working capital is (current assets – current liabilities) = £2,633.6 million. Typically, one would expect a positive net working capital figure to ensure that the company has enough liquid assets to pay off its short-term liabilities. Berkeley’s net working capital is high in comparison to the size of the firm and it would be considered cash rich. This will give the firm an excellent basis to invest over the coming year.