Total Shareholders' Equity

What is Total shareholders’ equity?

Total shareholders’ equity represents the owners’ claim on a company’s assets after all liabilities have been paid. It shows how much of the business is financed by its shareholders rather than by debt. Shareholders’ equity includes invested capital and retained earnings, and it reflects the net worth of the company from an accounting perspective.

Formula:

Shareholders’ equity = Total assets – Total liabilities

Components include common stock, additional paid-in capital, retained earnings, and other comprehensive income.