For a company, this is known as shareholders' (or owners') equity and is determined by subtracting liabilities on the balance sheet from assets. For example, if a company has $45 million worth of liabilities and $65 million in assets, the company's net worth (shareholders' equity) is $20 million ($65 million - $45 million).
Alternatively, let's say an individual has only three assets, $100,000 of common stock, $30,000 worth of bonds and title to a $190,000 house. Conversely they have only one liability, $150,000 owing on their mortgage. The individual's net worth would be $170,000 ([$100,000 + $30,000 + $190,000] - [$150,000]).
Investment dictionary. Academic. 2012.
Look at other dictionaries:
net worth — n: the excess of the value of assets over liabilities: net assets at asset 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
net worth — (izg. nȅt vȏrt) m DEFINICIJA ekon. stvarna vrijednost imovine vlasnika poduzeća, iskazana kao razlika koja preostane kada se od stvarne vrijednosti aktive poduzeća odbiju svi dugovi (dobavljačima, bankama i sl.) ETIMOLOGIJA engl … Hrvatski jezični portal
net worth — /net wɜ:θ/ adjective the value of all the property of a person or company after taking away what the person or company owes ● The upmarket product is targeted at individuals of high net worth … Marketing dictionary in english
net worth — /net wɜ:θ/ noun the value of all the property of a person or company after taking away what the person or company owes ● The upmarket product is targeted at individuals of high net worth … Dictionary of banking and finance
net worth — the owner/s interest in a business, calculated by subtracting all liabilities from the assets of the business. Glossary of Business Terms common stockholders equity which consists of common stock, surplus, and retained earnings. Bloomberg… … Financial and business terms
Net worth — Common stockholders equity which consists of common stock, surplus, and retained earnings. The New York Times Financial Glossary * * * net worth ˌnet ˈworth noun [uncountable] ACCOUNTING FINANCE the value of a company calculated by taking its… … Financial and business terms
Net worth — For the 1995 hockey film, see Net Worth (TV film). For the 2000 film, see Net Worth (film). In business, net worth (sometimes called net assets) is the total assets minus total outside liabilities of an individual or a company. For a company,… … Wikipedia
net worth — The amount by which assets exceed liabilities. Remainder after deduction of liabilities from assets. W. H. Miner, Inc. v. Peerless Equipment Co., C.C.A.I1L, 115 F.2d 650, 655. Difference between total assets and liabilities of individual,… … Black's law dictionary
Net Worth — Filmdaten Deutscher Titel: Die Macht des Geldes Originaltitel: Net Worth Produktionsland: USA Erscheinungsjahr: 2000 Länge: 95 Minuten Originalsprache: Englisch … Deutsch Wikipedia
net worth — noun : net assets * * * net worth phrase the value of all your property, possessions, and money after you remove what you owe Thesaurus: relating to money and possessionssynonym types of tax and taxationhyponym Main entry … Useful english dictionary