Shareholders’ Equity

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Description of Shareholders’ Equity. Explanation.


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Definition Shareholders’ Equity. Description.

Shareholders’ Equity is that which remains of company’s value after all prior claims against its assets has been met. The balance sheet value of shareholders’ equity is the total value of share capital and reserves.

It can be calculated as the value of a company's assets less the value of its liabilities. Shareholders' equity appears on the liability side of a company's balance sheet.

Also called: Book Value

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Introduction to the Balance Sheet

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Usage (application): Initial Understanding of a Balance Sheet, Financial Statement Analysis, Accounting

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Compare also: Shareholder Value Perspective  |  Shareholder Value

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