Crafters Companion Limited's net worth was £4,409,855.00 in 2019 and £3,566,004.00 in 2022. This figure represents the company's total assets minus its total liabilities.
Understanding Company Net Worth
Net worth, often referred to as shareholder's equity or owner's equity, is a key financial metric that indicates the total value of a company after all its liabilities have been deducted from its assets. It essentially shows what the owners would be left with if all assets were sold and all debts were paid off. A positive net worth indicates a healthy financial position.
Crafters Companion Financial Overview
To provide a comprehensive view of Crafters Companion Limited's financial standing, here is a summary of key figures from their accounts for 2019 and 2022:
| Metric | 2019 | 2022 |
|---|---|---|
| Cash | £647,946.00 | £1,771,589.00 |
| Net Worth | £4,409,855.00 | £3,566,004.00 |
| Total Current Assets | £12,262,202.00 | £15,475,936.00 |
| Total Current Liabilities | £8,556,064.00 | £12,519,522.00 |
Analysis of Financial Trends
Between 2019 and 2022, Crafters Companion Limited experienced notable changes in its financial structure:
- Decrease in Net Worth: The company's net worth saw a decrease from over £4.4 million in 2019 to approximately £3.57 million in 2022. This suggests that while the company's asset base may have grown, its liabilities increased at a faster rate, thus reducing the overall equity.
- Increase in Cash: Despite the decrease in net worth, the company's cash holdings significantly increased, rising from £647,946.00 to £1,771,589.00. This indicates improved liquidity.
- Growth in Assets and Liabilities: Both total current assets and total current liabilities grew substantially. Current assets increased by over £3 million, and current liabilities grew by nearly £4 million. This expansion reflects an increase in operational scale but also a greater reliance on short-term obligations, contributing to the shift in net worth.
