The difference between a person's or company's total assets and total liabilities, representing their overall financial value.
Net Worth is a financial metric that represents the value of an individual's or a small business's assets minus its liabilities. It is a measure of the business's overall financial health and is calculated by subtracting total liabilities (such as loans, debts, and obligations) from total assets (such as cash, investments, property, and equipment). Net Worth provides an estimation of the business's value and its ability to meet financial obligations. It serves as an important indicator for small business owners to assess their financial stability, track progress over time, and make informed decisions regarding investments, expansion, or seeking additional funding.