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 ?
Funa pointed out that the IC has to be realistic in terms of the insurance industry meeting this goal, saying that the current net-worth of a number of insurance companies has yet to inch closer to the P900-million target.
In order to help the insurance players meet the minimum net-worth requirement this year, the IC had been encouraging the players to work on finding investors and merging.
Adjusting aggregate current-dollar net-worth figures both for inflation and population growth, average inflation-adjusted household net worth at the end of the first quarter of 2013 had returned to 90.3 percent of its peak level, which was reached at the end of the first quarter of 2007.
Personal net-worth calculations do not include equity in a home or the value of the business.
Attorneys Nan Kargahi and Jon Williams, writing in the May 18 issue of Set-Aside Alert, said SBA appears to be stepping up enforcement of the net-worth restrictions after several years of inaction.
Tax Planning for High Net-Worth Individuals Conference, Oct.
In view of the regressive nature of the net-worth method, TEI recommends that the alternative net-worth tax be repealed.
'Based on our initial findings, it really appears the Philippines has the highest net-worth requirement by law.
As a result, Funa, in a text message, bared a plan for an amendment to the Insurance Code allowing for a reduction in the net-worth requirement.
It was originally enacted as a net-worth tax, and far pre-dates P.L.
The Code does not define the term "financial status audit techniques." As used in the GAO's report, financial status or economic reality audit techniques consist of indirect methods of examination, such as the bank-deposits method, the cash-transaction method, the net-worth method, the percentage-of-markup method, and the unit-and-volume method.
But banks that don't meet the net-worth requirement have been allowed to invest as much as 10% of net worth for providing infrastructure and services support.