Net Worth

Posted in Finance, Accounting and Economics Terms, Total Reads: 711
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Definition: Net Worth

Net worth may be defined as the amount by which the total assets of the company exceed the total liabilities. It basically shows that how much the company is or an entity is worth. It is a key indicator of the financial health of the company.

If the net worth is positive and is continuously increasing then it may be said that the company is strong financially and vice versa.

 

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