shareholders' equity


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Shareholders' equity

This is a company's total assets minus total liabilities. A company's net worth is the same thing.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.

shareholders' equity

References in periodicals archive ?
However, some debt covenants were written based on the reported shareholders' equity, not the analyst-adjusted shareholders' equity, and this may give bondholders additional rights at the expense of equity owners.
A typical bank revolving loan covenant, for example, may set out the following requirements: a minimum amount of shareholders' equity, a maximum debt-to-equity ratio, and/or a minimum current ratio.
Even though the offsetting adjustment will not result in a charge against income, it is likely that many financial statement readers will be concerned with balance sheets that reflect significant pension liabilities, particularly if the recognition of those liabilities, in part, results in a direct reduction of shareholders' equity.