The formula to calculate the liquid net worth (LNW) is:
\[ LNW = LA - LB \]
Where:
Liquid net worth is defined as the total net worth of a company or individual that is in either cash or assets that can be easily converted to cash.
For example, if the liquid assets (LA) are $100,000 and the total liabilities (LB) are $40,000, the liquid net worth (LNW) can be calculated as follows:
\[ LNW = 100,000 - 40,000 = 60,000 \]
So, the liquid net worth for these values is $60,000.
