What does net worth mean?

Stock market experience/

Net assets is the sum of the owner's equity of an enterprise, that is, the balance of assets minus liabilities.

1. The meaning of net assets

Net assets is the sum of the owner's equity of an enterprise, that is, the balance of assets minus liabilities. If you don't understand this point, in the most understandable words, net assets are the funds that the company can control. If you have read the financial statements, you should understand that they are mainly paid in capital, surplus reserve and undistributed profit. Net assets is an important index in financial analysis, which directly reflects the operating results of an enterprise in the past accounting year. Whether or not the net profit is, how much it is, and the increase or decrease compared with the same period in the past are all important indexes of enterprise financial analysis.

2. What are the types of net assets

In terms of types, net assets mainly include administrative units, institutions and non-profit organizations. The so-called net assets of the administrative unit is the difference between the assets of the administrative unit and the responsibilities of the administrative unit. In daily life, it mainly refers to those fixed funds and balances. The net assets of public institutions are the balance of assets minus liabilities, including fixed funds, special funds, business balances and operating balances. Non profit organizations. After reading these categories of net assets, it is estimated that we also understand that the company's performance depends mainly on net assets. However, financial analysis should also pay attention to many indicators including changes in owner's equity and capital flow, and sum all factors together to get the overall financial situation of the enterprise.

[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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