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© 1989, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–Lincoln Extension. All rights reserved.


This NebGuide gives step-by-step instructions for filling out the included net worth statement, sometimes called a balance sheet.

A net worth statement, or balance sheet, is like a snapshot that shows a financial situation at a certain point in time. In simple terms, the net worth sheet shows how much money would be left if everything owned was converted into cash and used to pay off all debts.

The net worth statement includes what is owned (assets) on the left side of the sheet, what is owed to creditors (liabilities) on the right side of the sheet, and the net value or difference between what is owned and what is owed (net worth). This net worth statement also shows two financial ratios for use in analyzing a financial situation: (1) the current or liquidity ratio, which is the ratio of current or liquid assets to current liabilities; and (2) the debt load ratio or the ratio of total debts to total assets.