A firm with a negative net worth is insolvent on the books. [Harvey] accounting liquidity The ease and quickness with which assets can be converted to cash.
(A company can have negative net worth -- liabilities exceed assets -- although bankruptcy is probably near.). But a high net worth company with few liabilities may be squandering opportunities by refusing to take out loans.
If your liabilities are larger than your assets, you have a negative net worth.
understanding the numbers
Seeing where you stand will help you work toward reaching a better financial picture.
A bank or financial institution with negative net worth. Although zombie banks typically have a net worth below zero, ...
When a company has a negative net worth as a result of being bought out or going bankrupt, it may convert some of the bonds it has issued into shares of common stock.
The United States and Canada may have debts but they certainly do not have a negative net worth. Those debts have helped to pay for the huge installed base of highways, government buildings and other government projects like Hydro dams.
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
Similar financial terms
Accounting liquidity
The ease and quickness with which assets can be converted into cash ...
Deficit: The excess of liabilities over assets; a negative net worth.
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Deficit financing: The borrowing of money because expenditures will exceed receipts.
Accounting insolvency
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
Accounting liquidity
The ease and quickness with which assets can be converted to cash.
If your assets are larger than your liabilities, you have a positive net worth. But if your liabilities outweigh your assets, you have a negative net worth. When you apply for a loan, potential lenders may want to see your net worth statement.
Deficit Net Worth
The amount that liabilities exceed assets and capital stock--also referred to as "negative net worth."
See: Capital Stock ...
Only one of the top ten pays a dividend. Except for Western Digital, all have either reported losses in the past year or have low or negative net worth. Some, such as AMD and Micron, are consistently unprofitable.
Worse, in mid-1982 all S&Ls combined had a negative net worth, valuing their mortgages on a market-value basis, of $100 billion, an amount equal to 15 percent of the industry's liabilities.
estate) and then subtract your liabilities, or what you owe in loans and other obligations. If your assets are larger than your liabilities, you have a positive net worth. But if your liabilities outweigh your assets, you have a negative net worth.
 See also: Insolvency, Solvency, Values, Accounting insolvency, Accounting exposure
  
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