the value of all assets including cash less total liabilities Often used as an underwriting guideline to indicate creditworthiness and financial strength
Amount of assets which exceed liabilities; May also be known as stockholders equity or net assets For an individual -- the total value of all possessions such as houses, stocks, bonds, and other securities, minus all outstanding debts, such as mortgage and loans
>> The difference between total assets and total liabilities of an individual, corporation, etc
The amount by which total assets exceed total liabilities Also known as shareholder's equity or book value, net worth is what would be left over for shareholders if the company were sold and its debt retired It takes into account all money invested in the company since its founding, as well as retained earnings Examining the price-to-book ratio (P/B) of an industrial company with a lot of hard assets is a good way of telling if it's undervalued or overvalued See "Price/book value " BACK TO TOP