What Is Net Worth?
Net worth is the value of all assets minus all liabilities at a specific date. Assets include cash, investments, real estate, and business ownership stakes. Liabilities include loans, mortgages, credit card balances, and other debts. The formula is simple: Net Worth = Total Assets − Total Liabilities. This metric is used by individuals, households, companies, and governments to measure financial position according to Forbes.
Forbes regularly updates net worth estimates for billionaires using public filings, stock prices, and property records. As of the latest Forbes World's Billionaires List, the global billionaire count exceeds 2,600, with a combined net worth above $13 trillion. The list ranks individuals by estimated net worth and shows how asset values and debt levels change over time.
How to Calculate Net Worth
To calculate net worth, list every asset and assign its current market value. Common assets include bank accounts, brokerage portfolios, retirement accounts, real estate, vehicles, and business equity. Then list every liability, such as mortgage balance, auto loans, student loans, and credit card debt. Subtract total liabilities from total assets to get net worth.
For publicly traded companies, net worth is often called shareholders' equity and appears on the balance sheet. The U.S. Securities and Exchange Commission requires companies to file financial statements that include total assets, total liabilities, and shareholders' equity as shown on SEC filings. Investors use these figures to compare companies and track changes in corporate net worth over time.
Net Worth Examples from Major Companies and Individuals
Tesla's net worth is tied to its market capitalization and balance sheet data. As of the latest SEC filings, Tesla reports total assets exceeding $100 billion and total liabilities around $30 billion, resulting in shareholders' equity above $70 billion. Tesla's market value often exceeds its book net worth because investors value future growth and brand strength.
SpaceX, founded by Elon Musk, is a private company with estimated value in the tens of billions. Private company net worth is harder to verify because financials are not publicly disclosed. Forbes and other outlets estimate SpaceX's value based on funding rounds and secondary market transactions per Forbes reporting. Net worth estimates for private firms can change quickly with new investment rounds.