ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net worth is assets minus liabilities. Or, you can think of net worth as everything you own less all that you owe.

Detailed explanation-2: -To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets. Total liabilities would include any debt, such as student loans and credit card debt.

Detailed explanation-3: -Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed. This net worth calculator helps determine your net worth. It also estimates how net worth could grow or decline over the next 10 years.

Detailed explanation-4: -The statement records the assets of the business and their value, and the liabilities or financial claims against the business (i.e. debts). The amount by which the value of the assets exceed the liabilities is the net worth (equity) of the business.

Detailed explanation-5: -In short, the lower, the better. Ideally, you should look for companies with the fixed assets to net worth ratio of 0.50 or lower.