negative net worth

Deficit Net Worth

A situation in which a person or company has more liabilities than assets. This may happen to a person if, for example, he/she owes more on his/her mortgage than the home is worth. A company may have a deficit net worth after consistently posting operating losses over an extended period of time. It is important to note that a deficit net worth does not necessarily mean that bankruptcy is inevitable, but it may prevent the debtor from receiving new credit necessary to maintain operations. It is also called negative net worth.

negative net worth

An excess of liabilities over assets. If the assets are fairly valued, a firm with negative net worth could sell all its assets and then be unable to pay all its outstanding loans. Thus, nothing would remain for the owners. Also called deficit net worth.
References in periodicals archive ?
As per these guidelines, the CPSEs having negative net worth are considered as sick.
Regardless of how you look at the numbers, Mattel has a negative net worth." Shares of Mattel are down 4%, or 52c, to $11.54 in afternoon trading.
First, a person with negative net worth is not necessarily penniless.
Its surplus reserves have also been eroded, from P164.42 billion in 2010 to P20.71 billion last year, and in 2013, 2014 and 2015, it had a negative net worth.
But while it's one thing to not have many assets to speak of, it's another thing to reach the point of having a negative net worth -- and that's the category 14% of American households fall into.
IN UNRAVELING the complex financial trail of the Sudipta Sen- orchestrated Saradha scam, the Special Fraud Investigation Office ( SFIO) team has found that the books of the group show money parked in seven companies with very low or even negative net worth.
A conservative estimate suggests that the company generated profits of more than $1.0 billion from late 2003 to mid-2013; so how can it now have a negative net worth? The answer lies in the accounting for various transactions, as Quintiles was taken private in September 2003, recapitalized in 2007, and taken public again in 2013.
The holding company of Ashikaga Bank, a regional bank once nationalized after falling into negative net worth, has applied for listing on the Tokyo Stock Exchange, sources close to the matter said Wednesday.
to buy a majority stake in its mobile phone subsidiary, NEC Casio Mobile Communications Ltd., which has a negative net worth of about 60 billion yen.
Moreover, more than a third of our households have zero or negative net worth versus about 15% for whites.
The rating mirrors the firm's weak financial profile as well as its negative net worth and steady increase in payable days over the years.
Family First lost nearly $17 million and had negative net worth at year-end.