What does net assets mean?

Net assets generally refer to owners' equity or equity capital. The net assets of an enterprise usually refer to the net assets of the enterprise after deducting liabilities, which consists of two parts: 1, the capital invested by the enterprise at the beginning, including the premium part; 2. The assets created by the enterprise in the course of business operation, including those donated, belong to the owners' equity. In all kinds of skills and methods of basic analysis of stock investment, the sum of net assets is the most commonly used reference index, just like the price-earnings ratio, price-book ratio, sales rate and return on net assets.