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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.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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