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.
And remember, equity is expensive. Giving someone a 5% stake, means that that party owns 5% of your firm's net worth and profits forever!
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.
The formula for calculating the equity ratio is equal to shareholders' equity divided by the difference between total assets and intangible assets. The ratio is expressed in a percentage, so the resulting figure must then be multiplied by 100.
The balance sheet provides the values needed in the equity equation: Total Equity = Total Assets - Total Liabilities.
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.
Shareholders' Equity = Total Assets – Total Liabilities Take the sum of all assets in the balance sheet and deduct the value of all liabilities.
Share value (aka, Net Asset Value) is calculated by dividing the total Market Value of the Merged Pool by the Number of Shares.
The shareholder equity ratio is expressed as a percentage and calculated by dividing total shareholders' equity by the total assets of the company.
Shareholders' Equity = Total Assets – Total Liabilities Take the sum of all assets in the balance sheet and deduct the value of all liabilities. Total assets are the total of current assets, such as marketable securities and prepayments, and long-term assets, such as machinery and fixtures.