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.
This content can be found on the following page:
net worth is ...
... part of the Accounting and Investor Relations subjects.
... part of the Accounting and Investor Relations subjects.
... #13 on our list of the most popular terms.
... an essential investing term.
Related Terms
5 C's of credit, accounting equation, accredited investor, balance sheet, capital, capital net worth, debit, equity, financial planner, house poor and
net worth appears in the definitions of these other terms on BusinessDictionary.com
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