Shareholders' equity
Assets less liabilities and noncontrolling interests attributable to parent owners.
Worked example · a round-number company
Shareholders' equity$1.0B÷Total assets$10.0B=Share of assets10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↑Higher is better. Shows the book-value cushion belonging to shareholders.
Keep in mind
- Negative equity can arise from accumulated losses or buybacks; book equity is not market capitalization.