Net Worth of the Business = Total Assets – Total Liabilities
- It is the total amount of money invested in the business at the beginning plus any retained profits during its operation.
- It shows the book value that will arise and remain for shareholders, if all assets are sold and all liabilities to its creditors are paid off.
Business actions to improve the Index
- Increase in Total Assets, i.e. the assets of the Business without a corresponding increase in liabilities
- Reduce Total Liabilities through repayment with New Money (AMK) Increase in sales with fewer credit days Reduce expenses with more credit days
