networth

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
09 May 2011 calculation of networth of a listed company - formula required?

09 May 2011 Net worth is a stockholder's equity, it consist of equity
share capital plus reserve and surplus. In other words its
a difference between total assest and total liabilities.

09 May 2011 In business, Net worth (sometimes "net assets") is the total assets minus total liabilities of an individual or a company. For a company, this is called shareholders' equity and may be referred to as book value. Net worth is stated
for a particular point in time.

In personal finance, net worth is also used to refer to an individual's net financial position; similarly, it also
uses the value of all assets minus the value of all liabilities (debt).

Net worth in business is generally based on the value of all assets and liabilities at the carrying value, that is, the value as expressed on the financial statements. To the
extent that items on the balance sheet do not express their true ("market") value, the net worth will also be inaccurate.

Net worth in this formulation is not an expression of the market value of the firm: the firm may be worth more (or
less) if sold as a going concern.


09 May 2011 Net Worth is also called Net value of asset(NAV). It will calculate by giving formula NAV = Total assets - total
liabilities divided by outstanding units.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries