Formula and calculation for shareholder equity - Deepstash

Formula and calculation for shareholder equity

Shareholders' Equity = Total Assets - Total Liabilities

The information for this formula can be found on the company's balance sheet by using the following steps:

  1. Find the company's total assets for the period.
  2. Find the total liabilities, listed separately on the balance sheet.
  3. Subtract total liabilities from total assets to find the shareholder equity.

A less common method to find the shareholder equity is the company's share capital and retained earnings less the value of treasury shares.

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Equity

Equity

investopedia.com

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