Related Searches
on Ask.com
net worth
5 dictionary results for: Net worth
Webster's New Millennium™ Dictionary of English - Cite This Source - Share This
| Main Entry: | net worth |
| Part of Speech: | n pl |
| Definition: | See net assets |
Webster's New Millennium™ Dictionary of English, Preview Edition (v 0.9.7)
Copyright © 2007 Lexico Publishing Group, LLC
Copyright © 2007 Lexico Publishing Group, LLC
]
Dictionary.com Unabridged (v 1.1)
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
Investopedia - Cite This Source - Share This
Net Worth
The amount by which a company or individual's assets exceed their liabilities.
Investopedia Commentary
For a company, this is known as shareholder's (or owner's) 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 $65m worth of assets the company's net worth (shareholder's equity) would be $20m ($65m - $45m).
Alternatively, let's say an individual has only three assets, $100,000 worth of common stock, $30,000 worth of bonds and $40,000 worth of equity in their house. Conversely they have only one liability, $150,000 owing on their mortgage. The individual's net worth would be $20,000 ([$100,000 + $30,000 + $40,000] - [$150,000]).
Alternatively, let's say an individual has only three assets, $100,000 worth of common stock, $30,000 worth of bonds and $40,000 worth of equity in their house. Conversely they have only one liability, $150,000 owing on their mortgage. The individual's net worth would be $20,000 ([$100,000 + $30,000 + $40,000] - [$150,000]).
Related Links
Reading The Balance Sheet
Advanced Financial Statement Analysis
See also: Assets, Balance Sheet, Clean Balance Sheet, Debt, Liabilities, Mortgage, Shareholder's Equity
Also spelled: networth, total net worth, tnw
Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Wallstreet Words - Cite This Source - Share This
net worth
- A measure calculated by subtracting total liabilities from total assets. For an individual, total assets are recorded at current market value. For a company, net worth uses assets as recorded on the balance sheet at historical cost minus any depreciation. See also owners' equity.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott.
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: net worth
Function: noun
: the excess of the value of assets over liabilities : NET ASSETS at, ASSET
Main Entry: net worth
Function: noun
: the excess of the value of assets over liabilities : NET ASSETS at, ASSET
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Share This:
Copyright © 2008, Dictionary.com, LLC. All rights reserved.