Net Worth

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, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time. In the case of an individual, the term estate is used in relation to deceased individuals in probate. For businesses, the term is used in the context of fraudulent law and on the dissolution of the company.

In personal finance, net worth (or wealth) refers to an individual's net economic position; similarly, it uses the value of all assets (long term assets) minus the value of all liabilities.

Net worth in business is generally based on the value of all assets and liabilities at the carrying value which is the value as expressed on the financial statements. To the extent items on the balance sheet do not express their true (market) value, the net worth will also be inaccurate.

Net worth in this formulation is not an expression of the market value of the firm: the firm may be worth more (or less) if sold as a going concern.

On reading the balance sheet, if the accumulated losses exceed the shareholder's equity, it is a negative value for net worth.

Other articles related to "net worth, net":

African American - Demographics - Economic Status
... According to Forbes magazine's "wealthiest American" lists, a 2000 net worth of $800 million dollars made Oprah Winfrey the richest African American of the 20th century by contrast, the net ... In Forbes' 2007 list, Gates' net worth decreased to $59 billion while Winfrey's increased to $2.5 billion, making her the world's richest black person ... and as of 2009, had an estimated net worth of $550 million ...
List Of Taiwanese People By Net Worth
... This is a list of Taiwan's wealthiest people, based on each person's total net worth ... The total net worth is an estimate measured in United States dollars by Forbes in 2009 ...
Challenges of The Black Middle Class - Racial Wealth Gap
... Whereas educationally middle-class whites possessed $111,000 in median net worth, educationally middle-class black families had only $33,500 dollars in terms of assets the disparity with $56,000 ... visible middle-class whites had only $123,000 in median net worth and $60,000 in median net financial assets compare to $26,500 and $11,200 for middle-class African ... For each dollar of income a family earns, white families earn $3.25 in net worth and black families accumulate just under $2 of net worth for each dollar earned ...
BRW Rich 200 - Top Ten Individuals and Families - Individuals
... Name 2013 ... Sources of wealth Rank Net worth (AUD) billion Rank Net worth (AUD) billion Rank Net worth (AUD) billion Rinehart, GinaGina Rinehart 70001000000000000001 $10.31 ...
Substantiate
... The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus ... Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing." ...

Famous quotes containing the words worth and/or net:

    A prodigal returned is worth more than gold.
    Chinese proverb.

    Here’s a fish hangs in the net like a poor man’s right in the law; ‘twill hardly come out.
    William Shakespeare (1564–1616)