WordValenet worth
total assets minus total liabilities
In more detail
1. (noun) the total value of someone's money and possessions minus what they owe; a person's financial value
2. (noun) the total value of a company's assets minus its debts
Examples
- 1. Her net worth increased significantly after she sold her business.
- 2. The company's net worth fell by millions during the recession.
How to use net worth
Net worth is a technical financial term used to express someone's or a company's actual wealth after accounting for debts and liabilities. It is commonly used in financial reporting, investment contexts, and discussions of personal or corporate financial health. Unlike 'wealth' or 'riches', which are more general, net worth is precise and often calculated formally.
Common phrases
- net worth of
- estimated net worth
- increase/decrease in net worth
- net worth statement
- calculating net worth
Synonyms
total assets · financial position · wealth · equity · balance sheet value
Word family
net-worth (adjective, attributive)
A common mistake
Learners sometimes confuse gross assets (before subtracting debts) with net worth; net worth specifically requires deducting all liabilities from total assets.
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