Shareholders Equity

Shareholders Equity is the Shareholders ownership in a Company and sits on the Liability Side of the Balance Sheet. A key component of several Leverage Calculations.

Shareholders Equity is a Balance Sheet entry under Liabilities. In the end the Company owes this money to Shareholders. Total Shareholders Equity is equal to Total Assets less Liabilities. Shareholders’ Equity is comprised of several different entries including Shares Outstanding, Additional paid-in Capital, Retained Earnings and Treasury Stock. As is the case for other Balance Sheet entities Shareholders Equity is also known under a couple of different names. Net Worth, Book Value. In the end, Shareholders’ Equity represents the ownership of the Company by Shareholders and is one of the key components of the Leverage Calculations.