Shareholders Equity Formula

The Shareholder's fund is the total net value of a company that needs to be returned to the shareholder's of the company if all the debts are repaid and assets are liquidated. You can find the shareholder's funds by using the simple shareholders equity formula mentioned below. This Shareholders fund formula portrays that just subtracting the total amount of liabilities on a company's balance sheet from the total amount of assets will give stockholder's fund.

Shareholders Fund Formula


Shareholders Fund = Total Assets - Total Liabilities

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Shareholder's funds usually depend upon the following accounts such as common stock, preferred stock, retained earnings, and treasury stock. Use this Shareholders equity formula to do the stockholder's equity calculation on your own.

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