average shareholders' equity

Definition

A variation of the return on equity formula which calculates the shareholders' equity component by adding shareholders' equity at the beginning of a time period to the shareholders' equity at the end of that time period and averaging the total.

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You should try to break down the average shareholders' equity so that you can know how well you are doing.

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Since there were new shares added during the quarter, they decided to use a calculation of the average shareholders' equity to determine a more appropriate number.

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AVERAGE SHAREHOLDERS' EQUITY A variation of the return on equity formula which calculates the shareholders' equity component by adding shareholders' equity at the beginning of a time period to the shareholders' equity at the end of that time period and averaging the total.

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