Net assets refer to the total value of an entity's assets minus its liabilities. It provides a measure of an entity's financial health by taking into account both its debts and total assets. The net assets calculation is used by businesses to determine their equity or ownership interest. The formula to calculate net assets is:

Net Assets = Total Assets - Total Liabilities

Total assets refer to the sum of all of an entity's assets, such as cash, property, equipment, and investments. Total liabilities refer to the sum of all of an entity's debts, such as loans, accounts payable, and other obligations.

Net assets are an important measure of financial health for both individuals and businesses. For individuals, net assets may include the value of their home, car, investments, and other assets, minus any debts such as mortgages, car loans, and credit card balances.

In financial services organisations, net assets are used to assess the financial health of the organisation. Financial institutions use net assets to determine their equity or ownership interest and to evaluate their ability to meet financial obligations. Net assets are also used to calculate the net asset value (NAV) of investment funds, which represents the per-share value of the fund's holdings after subtracting its liabilities.

In summary, net assets provide an important measure of an entity's financial health by taking into account both its liabilities and total assets. It is a calculation used by businesses, individuals, and financial institutions to determine equity or ownership interest, evaluate financial health, and calculate the net asset value of investment funds.