Learn in the textbookThe Big Picture of Financial Statements
DefinitionNet assets (純資産) are what remain after subtracting total liabilities from total assets: the company's own wealth, which does not have to be repaid.
ExplanationCapital contributed by shareholders and profits built up over the years make up net assets, which appear below liabilities on the credit (right) side of the balance sheet. Net assets are also called equity, and they are used to calculate indicators of a company's financial safety and profitability.
AnalogyTake the value of your house, subtract the loan still owed, and what is left is the part that is truly yours.
Memory hook"Net" means what is left after deductions. Take away what was borrowed, and the remainder is the net part.