net worth
Definition 1
For a company, total assets minus total liabilities. Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation. Net worth can be used to determine creditworthiness because it gives a snapshot of the company's investment history. also called owner's equity, shareholders' equity, or net assets.
Definition 2
For an individual, the value of a person's assets, including cash, minus all liabilities. The amount by which the individual's assets exceed their liabilities is considered the net worth of that person.
For a company, total assets minus total liabilities. Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation. Net worth can be used to determine creditworthiness because it gives a snapshot of the company's investment history. also called owner's equity, shareholders' equity, or net assets.
Definition 2
For an individual, the value of a person's assets, including cash, minus all liabilities. The amount by which the individual's assets exceed their liabilities is considered the net worth of that person.
Related Terms
Related Terms on BusinessDictionary
solvency ratios
regulatory capital
equity
fixed assets (net) to net worth ratio
pre-tax return on net worth
pre-tax return on sales
sales to net worth ratio
stub stock
total debt to net worth
balance sheet method of computing taxable income
book value (BV)
current liabilities to net worth ratio
debt to worth ratio
return on equity (ROE)
capital turnover
accredited investor
net capital
regulatory capital
equity
fixed assets (net) to net worth ratio
pre-tax return on net worth
pre-tax return on sales
sales to net worth ratio
stub stock
total debt to net worth
balance sheet method of computing taxable income
book value (BV)
current liabilities to net worth ratio
debt to worth ratio
return on equity (ROE)
capital turnover
accredited investor
net capital
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net worth is ...
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