Net Worth

Net worth can be a term applied to either a business or an individual. The amount attached to Net Worth is used to understand how profitable a business is or how rich an individual is in terms of the current market. It is the excess of total assets over the total liabilities of the party in question. It can also be described as the monetary worth of someone, excluding any debts they might have. Net worth is usually calculated on a yearly basis, after a person or company has filed its returns for that financial year.