regarding net worth

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kumar

kumar (Querist)

21 October 2009 How to calculate net worth of a company ?

Ram Avtar Singh

Ram Avtar Singh (Expert)

21 October 2009 What Does Net Worth Mean?
The amount by which assets exceed liabilities. This term can be applied to companies and individuals. Investopedia explains Net Worth
For a company, this is known as shareholders' (or owners') equity and is determined by subtracting liabilities on the balance sheet from assets. For example, if a company has $45 million worth of liabilities and $65 million in assets, the company's net worth (shareholders' equity) is $20 million ($65 million - $45 million).

Alternatively, let's say an individual has only three assets, $100,000 of common stock, $30,000 worth of bonds and title to a $190,000 house. Conversely they have only one liability, $150,000 owing on their mortgage. The individual's net worth would be $170,000 ([$100,000 + $30,000 + $190,000] - [$150,000]).

Ram Avtar Singh

Ram Avtar Singh (Expert)

21 October 2009 get help from this link also

https://www.canadianbusiness.com/my_money/planning/retirement_rrsp/net_worth_calc.html

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)

21 October 2009 Net worth = Equity capital + Reserves + Preference Capital - Misc expenditure not written off. (OR)

Networth = Total Assets - Outside liabilities - Misc expenditure not written off.

Tangible Networth means: Networth as calculated above - Intangible assets.

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