Enter the value of all assets and liabilities owned by shareholders to determine the shareholder’s equity.
Shareholders Equity Formula
The following formula is used to calculate a shareholder’s equity.
- Where SE is the shareholders’ equity
- A is the total assets owned by the shareholders
- L is the total liabilities owned by the shareholders
Shareholders Equity Definition
A shareholder’s equity is defined as the difference between the assets and liabilities owned by a shareholder.
Shareholders Equity Example
How to calculate a shareholders equity?
- First, determine the shareholders assets.
Calculate the value of the shareholders assets.
- Next, determine the shareholders liabilities.
Calculate the value of a shareholders liabilities.
- Finally, calculate the equity.
Calculate the shareholder’s equity with the equation above.
Shareholders equity is the total equity owned by shareholders. It is calculated by subtracting the total liabilities from the total assets.