![]() ![]() ![]() Assets can also be valuable physical items like jewelry or gold. Assets might include cash, investments, inventory, bank accounts, brokerage accounts, retirement funds and real estate. To calculate an individual's net worth, you can add together the value of all their assets, then subtract the value of any liabilities that they owe. Net worth for a business is also known as book value or shareholders' equity. When calculating the net worth of an individual, you may label those with high net worth "high-net-worth individuals" (HNWI). Similarly, when a country has a high net worth, it suggests a healthy long-term economy. For example, when a company has a high net worth, that suggests a healthy financial standing. You can calculate the net worth of an individual, company, sector or country to better understand their financial situation. Net worth is the monetary amount by which an entity's assets exceed its liabilities. Read more: How To Calculate Your Net Worth What is net worth? In this article, we describe what net worth is, define liquid net worth and explain the differences between these two terms. While these two terms share many similarities, there are key differences between net worth and liquid net worth that it may benefit you to understand. Net worth and liquid net worth are both metrics by which you can better understand and discuss the value and financial situation of a person or company. Understanding how to assess financial standing is a useful tool for individuals and financial professionals alike.
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