networth
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 May 2011
calculation of networth of a listed company - formula required?
CA Ravi Sisodia
(Expert)
09 May 2011
Net worth is a stockholder's equity, it consist of equity
share capital plus reserve and surplus. In other words its
a difference between total assest and total liabilities.
share capital plus reserve and surplus. In other words its
a difference between total assest and total liabilities.
CA Ravi Sisodia
(Expert)
09 May 2011
In business, Net worth (sometimes "net assets") is the total assets minus total liabilities of an individual or a company. For a company, this is called shareholders' equity and may be referred to as book value. Net worth is stated
for a particular point in time.
In personal finance, net worth is also used to refer to an individual's net financial position; similarly, it also
uses the value of all assets minus the value of all liabilities (debt).
Net worth in business is generally based on the value of all assets and liabilities at the carrying value, that is, the value as expressed on the financial statements. To the
extent that items on the balance sheet do not express their true ("market") value, the net worth will also be inaccurate.
Net worth in this formulation is not an expression of the market value of the firm: the firm may be worth more (or
less) if sold as a going concern.
for a particular point in time.
In personal finance, net worth is also used to refer to an individual's net financial position; similarly, it also
uses the value of all assets minus the value of all liabilities (debt).
Net worth in business is generally based on the value of all assets and liabilities at the carrying value, that is, the value as expressed on the financial statements. To the
extent that items on the balance sheet do not express their true ("market") value, the net worth will also be inaccurate.
Net worth in this formulation is not an expression of the market value of the firm: the firm may be worth more (or
less) if sold as a going concern.
CA Ravi Sisodia
(Expert)
09 May 2011
Net Worth is also called Net value of asset(NAV). It will calculate by giving formula NAV = Total assets - total
liabilities divided by outstanding units.
liabilities divided by outstanding units.
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