net worth
C1Formal, Professional, Business
Definition
Meaning
The total value of a person's or company's assets (what they own) minus their liabilities (what they owe).
A key financial metric representing an entity's financial health and wealth at a specific point in time. It is used for personal finance, corporate valuation, and assessing creditworthiness. It is a snapshot, not a measure of income or cash flow.
Linguistics
Semantic Notes
Always expressed as a singular, uncountable noun. Implies a final, calculated figure. Often associated with high finance and wealth assessment.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage. Spelling of related financial terms may differ (e.g., cheque/check).
Connotations
Identical connotations of financial assessment and wealth.
Frequency
Equally frequent in business and financial journalism in both varieties.
Vocabulary
Collocations
Grammar
Valency Patterns
[possessive] net worthnet worth of [amount/entity]net worth in [currency]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “To be worth a fortune (related, but not direct)”
- “To be in the red (antonymic concept)”
Usage
Context Usage
Business
A standard metric for evaluating a company's balance sheet strength and for mergers & acquisitions.
Academic
Used in economics, finance, and sociology papers to measure inequality, wealth distribution, and corporate performance.
Everyday
Used when discussing personal finance, applying for large loans, or in news articles about wealthy celebrities/businesspeople.
Technical
A precisely defined accounting term: Total Assets minus Total Liabilities = Net Worth (or Shareholders' Equity).
Examples
By Part of Speech
adjective
British English
- The high-net-worth client requested private banking services.
American English
- She is a high-net-worth individual with a diverse investment portfolio.
Examples
By CEFR Level
- His net worth is very high.
- The businessman has a net worth of over one million pounds.
Learning
Memory Aids
Mnemonic
Imagine a fishing NET. What you catch and keep (assets) minus what escapes or you throw back (liabilities) is your NET WORTH.
Conceptual Metaphor
WEALTH IS A LIQUID IN A CONTAINER (accumulating, rising, dipping). FINANCIAL HEALTH IS PHYSICAL HEALTH (strong, weak, positive, negative).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Do not translate as 'чистая стоимость' in isolation, as this can be confused with 'net price'. The standard financial translation is 'собственный капитал' for companies and 'чистые активы' or 'состояние' for individuals.
Common Mistakes
- Using it as a plural (*net worths). Using 'networthy' as an adjective (incorrect; use 'high-net-worth'). Confusing it with 'income' or 'revenue'.
Practice
Quiz
What does 'net worth' primarily measure?
FAQ
Frequently Asked Questions
No. Salary is an income stream (money earned over time). Net worth is the total value of what you own minus what you owe at a specific moment.
Yes. If a company's liabilities (debts) exceed its assets, it has negative net worth, which is a sign of financial distress and may lead to insolvency.
Financial advisors typically recommend calculating it annually or quarterly to track your financial progress and health over time.
Net worth (or book value) is based on accounting values from the balance sheet. Market capitalisation is the total market value of a company's shares, based on its current share price, which reflects investor sentiment about future prospects.