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 rankings were published by a South African consultancy, where net wealth was calculated by adding up every citizen's assets (cash, property, jewellery, securities and 'business interests') less their liabilities.
It's unsurprising that the global net wealth distribution is so skewed - demographics alone are vastly important.
The richest one percent of the world's households now hold a little more than half of global private net wealth.
Specifically, from 1989 to 2013, the median net wealth of white college-educated households increased by $31,343 while that of black college-educated households fell by $19,816.
Net wealth or net assets is the aggregate value of all the assets owned, less the aggregate value of all the liabilities (obligations) owed to third parties on the same date.
Multivariate regression analysis identifies receipt of financial support for education and a home purchase as a positive contributor to net wealth and financial help for parents as a negative contributor to net wealth, disadvantaging Black college-educated households, who are less likely to receive and more likely to give financial support.
Williams' $150 million price tag is twice as large as her sister Venus' net wealth.
Households with low net wealth and credit-constrained households save to pay down debts and to repair household balance sheets, with some evidence that some households might have difficulty coping with future volatility in income due to levels of household indebtedness.
Interestingly, analyses have also emerged warning folks that paying down this debt quicker is not always better for the bottom line: HelloWallet built an illustrative model to examine the impact of the decision to pay off student loans ahead of schedule and found there are very few circumstances in which doing so leads to a higher net wealth at retirement.
Property price inflation is bene-ficial for existing owners, who will see their net wealth increase, but it will make entering the market more difficult still for new buyers.
Using unique Taiwanese initial public offering (IPO) features, we examine whether the underwriters control the issue method choice (the expected revenue collection hypothesis) or whether the issuers make the choice in the best interests of the pre-IPO shareholders (the expected net wealth gain hypothesis).
Summary: Global investment bank Credit Suisse estimated the net wealth per adult in Lebanon at $30,207 at the end of June 2015.