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.

References in periodicals archive ?
The first focuses on the IPO issuer's expected net wealth gain, while the second focuses on expected underwriter revenues to explain who makes the choice regarding the issue method.
BEIRUT: Global investment bank Credit Suisse estimated the net wealth per adult in Lebanon at $30,207 at the end of June 2015, down 1.
Today's fiftysomethings may be part of the first generation in American history to experience this kind of lifetime downward mobility, in which at every stage of adult life, they have had less income and less net wealth than did people who were their age ten years before.
The net wealth produced by a resource is technically called resource rent.
It became the lead region in terms of total net wealth for the first time since 2005, overtaking European holdings, which added $5.
Sorbus' client base consists of a small number of ultra high net wealth entrepreneurs, with assets of between PS20 million and PS50 million, some of who were dissatisfied with private banks.
I look forward to working alongside Charles and the team to promote Brown Shipley's considerable high net wealth offering.
Inflation: During the six years since inflation- and population-adjusted household net wealth reached its peak (end of the first quarter of 2007), the Personal Consumption Expenditures (PCE) price index (a measure of inflation) increased by a cumulative total of 11.
The UK's net wealth edged up 1% or about PS74bn on 2011, driven by a PS225 bn increase in the value of non-financial assets which range from houses and cars to cattle and fine art.
The UK's net wealth edged up 1% - or about PS74bn - on 2011, driven by a PS225bn increase in the value of non-financial assets which range from houses to cattle and fine art.
Many underestimate the threats to their personal net wealth, confident that their automobile and homeowners insurance policies will buffer the financial strain.
Average Aussie household net wealth is $32,178, while the OECD average is $40,516.