Net worth refers to the total value of assets owned by an individual or a company after subtracting any liabilities. It is a measure of the financial health and wealth of an entity. Net worth is calculated by subtracting the total liabilities from the total assets.

Heading 1: Importance of Net Worth
- Net worth provides an overview of an individual's or a company's financial position.
- It helps in determining the ability to meet financial obligations and make investments.
- Net worth is often used by lenders and financial institutions to assess creditworthiness.
- Individuals can use it to track their financial progress and set financial goals.

Heading 2: Components of Net Worth
- Assets: These include cash, investments, real estate, vehicles, personal belongings, and other valuable possessions.
- Liabilities: These encompass debts, loans, mortgages, and other financial obligations.

Heading 3: Calculation of Net Worth
- To calculate net worth, add up the value of all assets and subtract the total liabilities.
- The formula is: Net Worth = Total Assets - Total Liabilities.

Heading 4: Ratio Analysis - Overview (Class 12, Accountancy)
- Ratio analysis is a technique used to assess the financial performance, profitability, and efficiency of a company.
- It involves analyzing various financial ratios derived from the financial statements.
- Ratio analysis helps in comparing the company's performance with industry standards and past performance.

Heading 5: Types of Ratios
1. Liquidity Ratios: These ratios measure a company's ability to meet short-term obligations.
- Current Ratio: Current Assets / Current Liabilities.
- Quick Ratio: (Current Assets - Inventory) / Current Liabilities.

2. Profitability Ratios: These ratios assess the company's ability to generate profit.
- Gross Profit Margin: (Gross Profit / Net Sales) * 100.
- Net Profit Margin: (Net Profit / Net Sales) * 100.

3. Activity Ratios: These ratios evaluate how efficiently a company uses its assets.
- Inventory Turnover Ratio: Cost of Goods Sold / Average Inventory.
- Asset Turnover Ratio: Net Sales / Average Total Assets.

4. Solvency Ratios: These ratios determine the long-term financial stability of a company.
- Debt to Equity Ratio: Total Debt / Total Equity.
- Interest Coverage Ratio: Earnings Before Interest and Taxes (EBIT) / Interest Expense.

Heading 6: Benefits of Ratio Analysis
- Ratio analysis helps in identifying financial strengths and weaknesses.
- It assists in making informed decisions regarding investments and financial strategies.
- Ratio analysis aids in benchmarking against industry standards and competitors.
- It provides insights into the company's financial performance and profitability.

In conclusion, net worth is a measure of an individual's or a company's financial worth, calculated by subtracting liabilities from assets. Ratio analysis, on the other hand, is a technique used to assess financial performance using various ratios derived from financial statements. It helps in evaluating liquidity, profitability, activity, and solvency of a company.

Net Worth, in Normal PoV it is Total Net Assets{ (Building, cash, bank balance, houses, cars) less Depreciation } of a person, couple, or business.
.But as per accountancy (specifically class 12) Pov It is Net Assets less all the liabilities.