The Financial Statements

Shareholders’ Equity

What would be left for shareholders if the company sold every asset at its accounting value and paid off every liability: assets minus liabilities, also called book value. It grows when the company keeps profits and shrinks with losses and with large buybacks. A negative figure means liabilities exceed assets on paper. That is a warning for a struggling company but common for a profitable one that has bought back a lot of stock, such as some well-known consumer brands.

Educational information, not investment advice. See it applied across the screener →