Examples of net worth in the following topics:

 Wealth is commonly measured in terms of net worth, which is the sum of all assets, including home equity, minus all liabilities.
 Wealth in the United States is commonly measured in terms of net worth, which is the sum of all assets, including home equity, minus all liabilities.
 The wealth—more specifically, the median net worth—of households in the United States varies with relation to race, education, geographic location, and gender.
 This graph shows changes in the average net worth of families in each decile of the U.S. income hierarchy.
 In recent years, the average net worth of highincome families has grown significantly more than that of middle and lowerincome families.

 The difference between the assets and the liabilities is known as the equity (or the net assets, or the net worth, or capital) of the company, and according to the accounting equation, net worth must equal assets minus liabilities.
 Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing. "

 Capital reflects a bank's net worth.
 A bank's net worth equals bank's total assets minus total liabilities.
 Investors want a positive net worth because the stockholders receive assets if the bank is liquidated.


 Balance sheets are prepared with either one or two columns, with assets first, followed by liabilities and net worth.
 All balance sheets follow the same format: when two columns are used, assets are on the left, liabilities are on the right, and net worth is beneath liabilities.
 When one column is used, assets are listed first, followed by liabilities and net worth.

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 Company A had a net income last year of ten thousand dollars.
 It operated with two thousand five hundred dollars worth of assets.
 In that time, its net sales were fifty thousand dollars.
 Many analysts focus on net profit margins or returns on sales, which are calculated by taking the net income after taxes and dividing by the revenues or sales.
 The ROE is equal to the net income divided by the shareholder equity.

 Net Present Value (NPV) is the sum of the present values of the cash inflows and outflows.
 The net present value (NPV) is simply the sum of the present values (PVs) and all the outflows and inflows:
 The money earned on the investment is worth more today than the costs, therefore, it is a good investment.
 The money earned on the investment is worth less today than the costs, therefore, it is a bad investment.

 A machine bought in 2012, for example, will not be worth the same amount in 2022 because of things like wearandtear and obsolescence.
 The latter affects net income.
 For example, an asset worth $100,000 in year 1 may have a depreciation expense of $10,000, so it appears as an asset worth $90,000 in year 2.

 Capital budgeting is the planning process used to determine which of an organization's long term investments are worth pursuing.
 Capital budgeting, which is also called "investment appraisal," is the planning process used to determine which of an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing.
 Net present value (NPV) is used to estimate each potential project's value by using a discounted cash flow (DCF) valuation.
 The internal rate of return (IRR) is defined as the discount rate that gives a net present value (NPV) of zero.
 For example, if project A has an expected lifetime of seven years, and project B has an expected lifetime of 11 years, it would be improper to simply compare the net present values (NPVs) of the two projects, unless the projects could not be repeated.