Definition, Meaning & Synonyms
shareholders-equity
Noun
ˈʃɛrˌhoʊldərz ˈɛkwɪti
Definition
Shareholders’ equity is the residual interest in the assets of a company after deducting liabilities. It represents the ownership value held by shareholders in the company.
Examples
- After analyzing the balance sheet, the shareholders’ equity stood at $1 million.
- The increase in shareholders’ equity indicated that the company was becoming more profitable.
- Investors are often interested in the shareholders’ equity when assessing a company’s financial health.
Meaning
Shareholders’ equity reflects the amount that shareholders would receive if a company were liquidated and all its assets were sold and all debts paid. It represents the net worth or book value of a company.
Synonyms
- Owner’s equity
- Stockholders’ equity
- Net assets
- Book value
