Generally speaking, the net value is the amount left after all expenses are removed. In different fields, the meaning of net worth is different. Investors need to analyze the significance of net worth in combination with specific circumstances.

The professional view of net worth is depreciated value, which refers to the original value or replacement value of fixed assets after deducting accumulated depreciation; The simple understanding is that the amount of equity that shareholders can get depends on the size of net worth, with high net worth and large equity, and vice versa.

Calculation formula of net worth

The calculation formula of net assets is: total assets of enterprises or individuals-current liabilities and long-term liabilities = net assets of enterprises or individuals. Net assets are also called net assets, and net assets are one of the standards to measure the ability of enterprises or individuals.

Often the net assets of an enterprise represent the strength of the enterprise. The higher the net assets, the stronger the strength and the stronger the competitiveness. The net assets of individuals are used to measure personal value, and the high net assets indicate that individuals are rich.