Net net worth, a financial term, refers to the total value of an entity’s assets minus its liabilities. For instance, a company with $10 million in assets and $5 million in liabilities would have a net net worth of $5 million.
Understanding net net worth is crucial for assessing financial health, making investment decisions, and gauging creditworthiness. Historically, the concept evolved from the practice of calculating an individual’s net worth, which dates back centuries.