Preferred equity, carrying value
Preferred stock including additional paid-in capital, net of discount, within permanent equity.
Worked example · a round-number company
Preferred equity, carrying value$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
↕Neither higher nor lower is better. Separates preferred capital from common book equity.
Keep in mind
- Missing is not zero; excludes redeemable mezzanine preferred stock.