Formula
Stockholders' Equity = Total Assets – Total LiabilitiesHow do I calculate the stockholders equity?
It is important to know how to calculate Stockholders' Equity in order to understand the financial health of a company. This can be done by subtracting total liabilities from total assets. The formula for calculating Stockholders' Equity is Stockholders' Equity = Total Assets – Total Liabilities. You can use programs like Sourcetable to help with the calculations.
What is Stockholders' Equity?
Stockholders' equity is the remaining assets after liabilities are paid.
Key Points
How do I calculate stockholders equity?
Stockholders' Equity = Total Assets – Total Liabilities
Stockholder's Equity is a Company's Balance Sheet
Stockholder's equity is an important part of a company's balance sheet. It represents the total value of the company's assets and liabilities. It is used to calculate the amount of money that shareholders would receive in the event of liquidation.
Share Capital and Retained Earnings
Share capital is the amount of money that is raised by the company through the sale of its shares. Retained earnings are the net profits that the company has earned over the course of its existence, minus any dividends that have been paid out to shareholders. Together, these two components make up the total value of a company's stockholders equity.
