negative net worth

Deficit Net Worth

A situation in which a person or company has more liabilities than assets. This may happen to a person if, for example, he/she owes more on his/her mortgage than the home is worth. A company may have a deficit net worth after consistently posting operating losses over an extended period of time. It is important to note that a deficit net worth does not necessarily mean that bankruptcy is inevitable, but it may prevent the debtor from receiving new credit necessary to maintain operations. It is also called negative net worth.

negative net worth

An excess of liabilities over assets. If the assets are fairly valued, a firm with negative net worth could sell all its assets and then be unable to pay all its outstanding loans. Thus, nothing would remain for the owners. Also called deficit net worth.
References in periodicals archive ?
The sale consideration was arrived at taking into account the outstanding financial obligations and negative net worth of CJS Aviation.
which has a negative net worth of about 60 billion yen.
The holding company of Ashikaga Bank, a regional bank once nationalized after falling into negative net worth, has applied for listing on the Tokyo Stock Exchange, sources close to the matter said Wednesday.
Moreover, more than a third of our households have zero or negative net worth versus about 15% for whites.
Family First lost nearly $17 million and had negative net worth at year-end.
But this was more than offset by a pounds 450billion fall in the value of private nonfinancial businesses, while several other sectors such as central government also had a negative net worth.
now undergoing a state-backed rehabilitation process, said Wednesday its negative net worth -- liabilities in excess of assets -- has expanded to about 1 trillion yen.
To buy the company for that amount, employees would have to borrow about $84 million, taking the firm heavily into debt and giving it a negative net worth of $39 million.
Our company has always been profitable, and it has a solid balance sheet, but it may soon show a negative net worth," complains Alfred King, vice chairman of Valuation Research Corp.
MITSUI MINING FALLS INTO NEGATIVE NET WORTH AFTER STRICT AUDIT
20 billion yen negative net worth in the year ended in December thanks to substantial financial aid from The Grande Holdings Ltd.
As a new graduate, you are likely to have few assets and lots of liabilities in the form of accumulated student loans and credit card debt--in shod, a negative net worth.