Scroll Top


    Net Worth


    Net worth is nothing but the difference between assets and liabilities of a business. Positive net worth means that assets are more than the liabilities, while negative net worth describes the opposite.

    Understanding Net Worth

    Net worth describes the financial health of an organisation. An asset is owned by the business and has a monetary value while liabilities are obligations that have to be paid.

    So, if a business has liabilities in excess to what is owned, then the business's health is bad.

    1. The best way to improve the net worth is to either decrease liabilities while assets either stay constant or increase.
    2. Net worth can be calculated for individuals, businesses, companies, sectors, and even countries.
    3. In the context of business, net worth is also known as book value or shareholders' equity.
    4. Individuals with a substantial net worth are known as high net worth individuals (HNWI).

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption