Definition The value left for a company’s owners after all liabilities are subtracted from assets.
Example Assets of €5m minus liabilities of €3m gives shareholders’ equity of €2m.
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Choose your role to see what this term means in your work.
Why it matters It shows the owners’ stake in the business.
Where it is used Balance sheets and investor reports.
How to calculate it Assets − liabilities
Worked example Assets of €5m minus liabilities of €3m gives shareholders’ equity of €2m.
