net worth


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Net worth

Net Worth

An individual or company's assets minus liabilities, in which assets exceed liabilities. For example, if a company has $3 million in assets and $1 million in debt and other liabilities, it has a net worth of $2 million. The term may apply to companies or individuals, but is often used colloquially to refer to wealthy individuals.

net worth

A measure calculated by subtracting total liabilities from total assets. For an individual, total assets are recorded at current market value. For a company, net worth uses assets as recorded on the balance sheet at historical cost minus any depreciation. See also owners' equity.

Net worth.

A corporation's net worth is the retained earnings, or the amount left after dividends are paid, plus the money in its capital accounts, minus all its short- and long-term debt. Its net worth is reported in the corporation's 10-K filing and annual report.

Net worth may also be called shareholder equity, and it's one of the factors you consider in evaluating a company in which you're considering an investment.

To figure your own net worth, you add the value of the assets you own, including but not limited to cash, securities, personal property, real estate, and retirement accounts, and subtract your liabilities, or what you owe in loans and other obligations.

If your assets are larger than your liabilities, you have a positive net worth. But if your liabilities are more than your assets, you have a negative net worth. When you apply for a loan, potential lenders are likely to ask for a statement of your net worth.

net worth

see LONG-TERM CAPITAL EMPLOYED.

net worth

see LONG-TERM CAPITAL EMPLOYED.

net worth

The financial value of a person or company after adding all assets and subtracting all liabilities.

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Therefore, business cycle changes over time may affect households differently based on their net worth quintile and demographic characteristics.
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The poll, conducted September 5-7, 2007, looks at the responses of participants in five ranges of Net Worth (US$500K-US$1M; US$1-5M; US$5-10M; US$10-25M; US$25M+) to 11 questions on how market volatility is impacting their lifestyle and spending habits in 2007.
Looking ahead three to five years, what new services do you anticipate NFP offering to high net worth individuals and small-business owners?
Not even a winning Mega Millions lottery ticket would help the average American household - with a net worth of $86,000 - catch up to Forbes' pauper.
Furthermore, absence of cash flow from category number seven could mean that that you have to look to the client's liquid net worth for mortgage payments.
taxes if his or her (1) average income tax liability or (2) net worth on the date of expatriation exceeds certain thresholds.
Following is the second in a series of reports on wealth management strategies for Latin America's high net worth individuals.
After calculating the percentage change in net worth for the 208 individuals on the list and dividing them into quartiles, the average annual growth in net worth for those in the bottom quartile (52 of America's richest) was only 4.