Net worth

Net worth is the total value of an individual’s or business’s assets minus its liabilities.

It represents the financial position and overall economic value at a specific point in time.

For individuals, net worth includes assets such as property, investments, and savings, minus debts like mortgages, loans, and credit card balances.

For businesses, it is the difference between total assets (like cash, inventory, and property) and total liabilities (such as loans and accounts payable).

A positive net worth indicates financial stability, while a negative net worth may signal potential financial difficulties. Net worth is a key metric for assessing financial health.