What is Net Worth

Net Worth:- Net Worth means what is owned by the company. It is also called Net Wealth. By calculating Net Worth/Net Wealth we have an idea about a company's actual financial position. It is calculated by deducting external liabilities from total assets. It shows what portion of a company's assets is financed by owners fund. Simply it is the owners or stockholders Equity.

                       NET WORTH = TOTAL ASSETS - TOTAL LIABILITIES