Net worth refers to an individual's or a company's total assets minus their total liabilities. It represents the amount of wealth that a person or entity has accumulated over time and is used as a measure of financial health, stability, and success. Net worth can include various components such as cash savings, investments, real estate holdings, retirement accounts, and other assets, minus any outstanding debts, loans, mortgages, or liabilities. A positive net worth indicates that an individual has more assets than liabilities, while a negative net worth means the person owes more money than they have in assets.