Net assets

Net assets

Net assets, sometimes referred to as net worth, is the shareholders' equity = assets minus liabilities. The term net assets is commonly used with charities or not for profit entities -- a measurement of their ability to reinvest profits toward their mission.

In "Return On Net Assets" (RONA) it's often fixed assets plus net working capital (current assets minus current liabilities), which may be slightly less than total assets.

If net assets are negative, then an entity is balance sheet insolvent.

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Look at other dictionaries:

  • net assets — see asset 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • net assets — The difference between total assets on the one hand and current liabilities and noncapitalized long term liabilities ( liability) on the other hand. Bloomberg Financial Dictionary Part of a company s balance sheet. net assets equals total assets… …   Financial and business terms

  • Net assets — The difference between total assets on the one hand and current liabilities and noncapitalized long term liabilities on the other hand. The New York Times Financial Glossary * * * net assets net assets ➔ asset * * *    A company s total assets… …   Financial and business terms

  • net assets — noun plural 1. : the excess of value of resources over liabilities to creditors called also net worth 2. : admitted assets * * * the total assets of a business minus its total liabilities. Also called net worth. * * * net assets plural noun The… …   Useful english dictionary

  • net assets — The assets of an organization less its liabilities. The resultant figure is equal to the capital of the organization. Opinion varies as to whether long term liabilities should be treated as part of the capital and are therefore not deductible in… …   Accounting dictionary

  • net assets — The assets of an organization less its current liabilities The resultant figure is equal to the capital of the organization. Opinion varies as to whether long term liabilities should be treated as part of the capital and are therefore not… …   Big dictionary of business and management

  • net assets — grynasis turtas statusas Aprobuotas sritis buhalterinė apskaita ir finansinė atskaitomybė apibrėžtis Turtas, kurio vertė yra verslo jungimo būdu įsigytų, tikrąja verte įvertintų turto ir įsipareigojimų skirtumas. atitikmenys: angl. net assets… …   Lithuanian dictionary (lietuvių žodynas)

  • net assets — grynieji aktyvai statusas Aprobuotas sritis kolektyvinio investavimo subjektų veikla apibrėžtis Investicinį fondą sudarančio ar investicinei bendrovei priklausančio turto vertės ir investicinio fondo ar investicinės bendrovės ilgalaikių bei… …   Lithuanian dictionary (lietuvių žodynas)

  • net assets per share — A yardstick for measuring the performance of companies with shares listed on the Official List. It is frequently used for property and investment companies. The basic calculation of net assets per share is: net assets (total assets on the balance …   Law dictionary

  • net assets per share — An accounting ratio, defined as net assets divided by the number of shares in issue. It is also known as net worth per share. The purpose of the ratio is to compare the net assets per share with the share price. The share price will either be at… …   Financial and business terms

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