Stockholders’ Equity is the difference between the firm’s assets and liabilities, also known as book value of equity. In other words, it's what's left for the shareholders if all the company's assets were sold off and all its debts were paid off.Stockholders' Equity is reported on a company's balance sheet and is calculated using this formula:
Learn Book Value of Equity with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Book Value of Equity through hands-on practice and real-world examples.