Share Capital = Number of Issued Shares × Nominal Value per Share. For example, if a company has an authorised share capital of Rs. 10,00,000 and it has issued 100,000 shares with a nominal value of Rs. 10 per share, the calculation would be as follows: Share Capital = 100,000 Shares × Rs.
The shareholder equity ratio is calculated by dividing the shareholder's equity by the total assets (current and non-current assets) of the company. The figures required to calculate the shareholder equity ratio are available on the company's balance sheet.
The formula to calculate total equity is Equity = Assets - Liabilities. If the resulting number is negative, there is no equity and the company is in the red.
Shareholders' Equity = Total Assets – Total Liabilities Take the sum of all assets in the balance sheet and deduct the value of all liabilities.
Total equity is the value left in the company after subtracting total liabilities from total assets. The formula to calculate total equity is Equity = Assets - Liabilities.
Shareholders' Equity = Share Capital + Retained Earnings – Treasury Stock. The share capital method is sometimes known as the investor's equation. The above formula sums the retained earnings of the business and the share capital and subtracts the treasury shares.
Shareholders' equity can be calculated by subtracting a company's total liabilities from its total assets, both of which are itemized on the company's balance sheet.