net liability

USAGE SUMMARY

The phrase "net liability" is correct and usable in written English. You can use it in financial contexts to refer to the total liabilities of an entity minus its total assets. For example, "The company's net liability increased due to rising debts." Alternative expressions include "net obligation" and "net debt."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

9 human-written examples

If it increases that patient's survival to two years and one month, it's a net liability.

The New Yorker

The net liability, that is what's owed if everything owed is gathered and then everything owned is sold, has decreased by £58bn from the previous year.

The Guardian

The scale of the net liability to be borne by the public purse will depend crucially on British Energy's performance in future years," the audit office chief says.

The Guardian - Business

By season's end, Ramirez's stats will probably be in the ballpark of what we projected, but so far, he's been a net liability for anyone who paid the steep price for him.

The New York Times

It cites plans that a new owner would take over, for employees at the two papers, that have $123 million in assets and $182 million in obligations, for a net liability of $59 million.

The New York Times

We may have had a good run in the markets in early 2013, but this won't occur every year; sooner or later the shortfall will weigh on taxpayers and will require higher contributions.For credit purposes, Moody's compares this adjusted net liability (the shortfall) with state revenues.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

51 human-written examples

It had net liabilities of £250.4 million at the end of March.

The New York Times

However net liabilities increased from £19.4m in 2008 to £22.2m last year.

The Guardian

They have put up £25,500 by subscribing to the shares, leaving net liabilities of £6,356.

The Guardian - Business

Last.fm reported that net liabilities rose from £31.5m to £35.4m year-on-year.

The Guardian

The UK's net liabilities without including the banks is £988.7bn.

The Guardian

Expert writing Tips

Best practice

When discussing a company's financial health, clarify whether you are referring to "net liability" or gross liabilities to avoid misinterpretations. Always provide context to ensure clarity.

Common error

Avoid using "net liability" interchangeably with "gross liability". "Net liability" considers assets, providing a more accurate financial picture, whereas "gross liability" only considers debts. Confusing the two can lead to inaccurate assessments.

Linguistic Context

The phrase "net liability" functions as a noun phrase typically used in financial contexts. It refers to the amount by which an entity's liabilities exceed its assets. This phrase is used for assessing overall financial health, as shown in Ludwig examples.

Expression frequency: Uncommon

Frequent in

News & Media

75%

Science

13%

Formal & Business

12%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "net liability" is a grammatically correct noun phrase used to describe the extent to which an entity's liabilities exceed its assets. Ludwig AI confirms that this phrase is most frequently found in news and media sources. Understanding the difference between "net liability" and related terms such as "net asset" is critical for accurate financial analysis. When using the phrase "net liability", be sure to clarify whether it is net or gross liabilities you are referring to in your writing, as confusion can result in misinterpretation. In summary, the phrase is professionally suited and useful when describing financial statements.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

net debt

Replaces "liability" with "debt", emphasizing the financial obligation.

total deficit

Focuses on the shortfall or negative balance.

overall indebtedness

Highlights the state of being in debt.

negative equity

Emphasizes the situation where assets are worth less than liabilities.

financial burden

Stresses the weight or difficulty caused by the financial obligation.

outstanding obligations

Highlights the unfulfilled financial commitments.

total financial exposure

Focuses on the degree to which an entity is at risk due to financial commitments.

unfunded liability

Highlights liabilities for which there are not enough assets set aside.

cumulative losses

Focuses on the accumulated financial losses.

financial shortfall

Emphasizes the insufficient funds to cover obligations.

FAQs

How is "net liability" calculated?

The "net liability" is calculated by subtracting total assets from total liabilities. If the result is a positive number, it indicates a net asset position. If the result is negative, it represents a "net liability".

What does a high "net liability" indicate?

A high "net liability" suggests that an entity's debts and obligations are significantly greater than its assets, potentially indicating financial distress or instability. It's essential to compare this figure with industry benchmarks and historical data to assess the severity.

What is the difference between "net liability" and "net asset"?

"Net liability" indicates that an entity's liabilities exceed its assets, resulting in a negative net worth. Conversely, "net asset" signifies that assets are greater than liabilities, reflecting a positive net worth.

How can I use "net liability" in a sentence?

You can use "net liability" in sentences such as, "The company's "net liability" increased due to rising debts" or "Despite strong revenues, the organization still reported a significant "net liability" at the end of the fiscal year."