Whst increases the net worth of a company?

Answer 1

The net worth of a company increases through a combination of factors, primarily driven by profitability, asset appreciation, and effective cost management. When a company generates higher revenues than expenses, its retained earnings grow, contributing to net worth. Additionally, increasing the value of assets, such as property, equipment, or investments, further enhances net worth. Strategic decisions, such as reducing liabilities or improving operational efficiency, also play a crucial role in boosting a company's overall financial health.