net capital

Definition

A firm's net worth, minus deductions taken for any assets that might not easily be converted into cash at their full value.

Use net capital in a sentence

The net capital of the firm was an area of interest to me and I wondered what it was all about.

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The Net capital calculation took into consideration the firms liquid assets but the firm holds major contracts for high dollar deals as well.

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Stephen balked at the accounting departmentïs assessment of the companyïs net capital, but realized it made sense when taking into account the corporationïs private jet purchases.

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capital net capital ratio