What it is:
Net worth refers to the total value of an individual or company expressed as total assets less total liabilities.
How it works (Example):
For example, an individual with total assets of $100,000 and $30,000 of total debt would have a net worth of $100,000 – 30,000 = $70,000.
A company's net worth is calculated in a similar manner, but is referred to as stockholder equity.