net worth

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Net worth

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

net worth

see LONG-TERM CAPITAL EMPLOYED.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

net worth

see LONG-TERM CAPITAL EMPLOYED.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

net worth

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The greater volume of cattle trade on 'Baqra Eid' means a bigger net wealth transfer from urban to rural Pakistan, with cattle farmers of Punjab being rewarded generously
In Cyprus, economic inequalities have induced many less wealthy households to take on more debt to keep up with the conspicuous consumption of their wealthier neighbours and friends, in the process amplifying net wealth inequalities.
The singer-songwriter, 27, has an overall net wealth of PS80m, according to The Sunday Times Rich List.
Adults with net wealth of over $1 million also grew by over 13 percent to reach 38,000, while the number of ultrahigh net worth (UHNW) individuals with more than $50 million in net wealth also grew 13 percent over the same period to over 400.
India was recently ranked sixth in the world in terms of total household net wealth. Before the gloating and backslapping begins it might be worthwhile to both investigate the source and undergo a brief analysis of how wealth is actually distributed in India.
The only area of real weakness for Norway is household net wealth, which is below the OECD average.
The following year, 2015, the richest 62 billionaires owned as much private net wealth as the poorer half of humanity, more than 3.5 billion people.
'Historical economic stability allows Italy today to rank as one of the highest economies in terms of net wealth per capita and per household, confirmed by its low level of private debt and average financial liabilities,' he maintained.
In the next five years household net wealth in the Mena region is expected to increase by a further 52 per cent, or nearly 8.8 per cent annually.
However, recent research indicates that the idea of college as invariably a good thing may be too broad a generalization: the expectation that a college education will lead to higher net wealth seems to be true for college-educated Whites but not college-educated Blacks.
The average retired adult who dies in his 60s leaves behind $296,000 in net wealth; that climbs to $313,000 if he dies in his 70s.
A college education has been linked to higher life-time earnings and better economic achievements, so the expectation would be that it is also linked to higher net wealth for everybody.