Understanding the financial well-being of individuals and businesses is crucial in today’s economic landscape. One indicator of financial stability is net worth, which represents the value of assets minus liabilities. Determining an individual’s or company’s financial health allows stakeholders to make informed decisions and plan for the future.
Calculating net worth involves considering various assets, including cash, investments, real estate, and personal property. On the other hand, liabilities encompass debts such as mortgages, loans, and outstanding bills. By subtracting liabilities from assets, we arrive at the net worth figure.