How to Calculate the Net Worth on Financial Statements

By Motley Fool Staff – Updated Apr 29, 2025 at 11:29 PM

Key Points

Net worth equals assets minus liabilities; calculate using the basic accounting equation.
Tangible assets include cash, real estate; intangibles include brand names, patents.
Negative net worth may signal issues but isn't always problematic for new businesses.

The net worth of a business is also known as its book value or its owners' (stockholders') equity. This figure can be computed relatively easily using information found on a company's balance sheet. However, even if the balance sheet isn't available, you can still calculate a business' net worth if you have some basic financial information.

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A businessperson reviewing an income statement. — Image source: Getty Images.

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And you currently have the following liabilities:

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