net assets

USAGE SUMMARY

The phrase "net assets" is correct and usable in written English.
It is typically used in financial contexts to refer to the total assets of an entity minus its total liabilities, representing the value owned by the entity. Example: "The company's net assets increased significantly over the last fiscal year, indicating strong financial health."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

"It had zero net assets".

The New York Times

"They still have growth in net assets," Mr. Levy said.

The New York Times

Net assets stood at £23m at the end of 2008.

The Guardian - Business

(Parade officials reported net assets of $730,000 last year).

The New York Times

Global lists the GMG's net assets to be worth £66.4m.

The Guardian

The fund reported brokerage commissions last year that were well under 1 percent of net assets.

The New York Times

In a disastrous 2008, the museum's net assets declined by 25 percent.

The New York Times

Book value is net assets (assets minus liabilities), or "owners' equity", in accounting terminology.

The Economist

Fund-raising fell further, and the school's net assets were down to $1 million.

The New York Times

Goldman Sachs calculates that Olympus's good will now exceeds the heavily indebted company's net assets.

The New York Times

This compares share prices with the replacement cost of companies' net assets.

The Economist

Expert writing Tips

Best practice

When discussing a company's financial health, use "net assets" in conjunction with other key metrics like revenue and profit margins to provide a comprehensive overview.

Common error

Avoid using "net assets" interchangeably with "gross assets". Gross assets represent the total value of assets before deducting liabilities, while net assets reflect the residual value after liabilities are subtracted.

Linguistic Context

The phrase "net assets" functions primarily as a noun phrase in financial contexts. It represents the residual value of an entity's assets after deducting its liabilities. As Ludwig AI indicates, it's a common term in evaluating financial health.

Expression frequency: Very common

Frequent in

News & Media

40%

Formal & Business

30%

Science

30%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "net assets" is a noun phrase commonly used in financial and business contexts to denote the value of assets after subtracting liabilities. Ludwig AI confirms its correctness and frequent use. Predominantly found in news, business, and scientific sources, the phrase serves to quantitatively assess financial health. For alternative phrasing, consider "net worth" or "total equity". A crucial writing tip is to differentiate "net assets" from gross assets, ensuring accurate financial communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

net worth

Focuses on the total value of assets minus liabilities for an individual or entity.

total equity

Emphasizes the ownership stake in a company's assets after deducting liabilities.

shareholders' equity

Specifically refers to the equity attributable to shareholders of a corporation.

book value

Relates to the value of an asset as recorded in the company's books.

asset base

Highlights the collection of assets that support an organization.

capital reserves

Concentrates on the portion of equity not available for distribution.

financial resources

Broader term referring to the funds and assets available.

available capital

Highlights the funds that are readily accessible for use.

economic resources

A more general term encompassing all resources with economic value.

liquid assets

Specifically refers to assets easily convertible to cash.

FAQs

How do you calculate "net assets"?

To calculate "net assets", subtract total liabilities from total assets. This provides a measure of the entity's worth.

What's the difference between "net assets" and "net worth"?

While closely related, "net assets" typically refers to the value of a business or organization, whereas "net worth" is often used in the context of personal finances.

Why is "net assets" an important financial metric?

"Net assets" provides a clear indication of an organization's financial stability and solvency, showing the value remaining after all debts are paid. This is crucial for investors, creditors, and stakeholders.

In what contexts is the term "net assets" commonly used?

The term "net assets" is frequently used in financial statements, business valuations, and discussions of organizational wealth and stability. It is also used in legal contexts, such as bankruptcy proceedings.