Net worth is the amount by which assets exceed liabilities. Another way to say this is, it's the value of everything you own, minus all your debts. In the corporate world, net worth is also called book value or shareholders' equity. The word “net”, in financial language, means “after subtracting expenses and debts.”
Also question is, what is the formula of net worth of a company?
Total assets minus total liabilities = net worth. This is also known as "shareholders' equity" and is the same formula one would use to calculate one's own net worth.
How do you calculate a person's net worth?
Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed. This net worth calculator helps determine your net worth. It also estimates how net worth could grow or decline over the next 10 years.
How do I find out my net worth?
How to set up a personal net worth statement.
- List your assets (what you own), estimate the value of each, and add up the total. Include items such as:
- List your liabilities (what you owe) and add up the outstanding balances.
- Subtract your liabilities from your assets to determine your personal net worth.