stockholders' equity

Definition

A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how much the company would have left over in assets if it went out of business immediately. Since companies are usually expected to grow and generate more profits in the future, most companies end up being worth far more in the marketplace than their stockholders' equity would suggest. For this reason, stockholders' equity is of more interest to value investors than growth investors. also called book value.

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I was an expert at stockholders' equity and knew everything about it and how it operated within our business world.

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The retained earnings and stockholders' equity were used in the accounting equation presented during the team meeting explaining our overall financial health.

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When they looked at the balance sheet, they noticed that the stockholders' equity was listed at $5 billion dollars. They felt comfortable that their positions would be covered if they went out of business.

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equity ratio capital turnover