negative net worth

negative net worth definition - finance
A condition in which a companyÂ’s liabilities exceed its assets plus shareholders equity. Negative net worth can occur because a company borrowed too much money and subsequently had its income fall as its debt payments rose. It also may occur if the value of assets declines.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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