effective net worth

Definition

Net worth plus subordinated debt. Since a company has flexibility in paying off subordinated debt, it is essentially an addition to the company's net worth.

Use effective net worth in a sentence

The effective net worth was really effective and we thought it was a really cool thing to take a look at.

​ Was this Helpful? YES  NO 6 people found this helpful.

After we had a banner quarter, our department manager informed us all that our profits had dragged the company's effective net worth into positive territory.

​ Was this Helpful? YES  NO 6 people found this helpful.

The effective net worth of Jessie's portfolio for her restaurant was approximately $500,000 and she was satisfied that that amount put her in a good position for the future.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
effective margin effective par