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Shareholders' Equity = Total Assets ? Total Liabilities The above formula is known as the basic accounting equation, and it is relatively easy to use.
Stockholders' equity can be calculated by subtracting the total liabilities of a business from total assets or as the sum of share capital and retained earnings minus treasury shares.
Stockholders' equity refers to the assets remaining in a business once all liabilities have been settled. This figure is calculated by subtracting total liabilities from total assets; alternatively, it can be calculated by taking the sum of share capital and retained earnings, less treasury stock.
The shareholder equity ratio is calculated by dividing the shareholder's equity by the total assets (current and non-current assets) of the company.
Stockholders' equity can be calculated by subtracting the total liabilities of a business from total assets or as the sum of share capital and retained earnings minus treasury shares.