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 ?
Nassef's brother Naguib Sawiris came in the sixth place with a net worth of $4bn, and came in second among the top six Egyptian billionaires included in the list.
Forbes' latest annual list of wealthiest individuals and families showed that out of the more than 2,200 billionaires around the world, seven are from the UAE who hold a combined net worth of $24 billion as of March 2018.
During the vetting that year, Mailu who was former Nairobi Hospital CEO said he had a net worth of Sh615 million.
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The Census Bureau has been conducting the income survey since 1977, and it added questions about household net worth, or wealth, to the survey it released in 1984.
Now when we think about the reasons why a household might have negative net worth, we may be inclined to blame mortgage and credit card debt.
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Higher net worth helps life insurers cope with changes in capital market and ease capital-raising pressure, as well as enhancing stock price.
Noeth investigate which demographic groups experienced the greatest recessionary declines in net worth (The Regional Economist, July 2012, The Federal Reserve Bank of St.
Ambani ranks 9 with a net worth of 27 billion dollars.