Cash and debt

Shareholders' Equity

What would be left for shareholders if the company used everything it owns to pay everything it owes, using the accounting values on its balance sheet.

Why does it matter?

It is part of invested capital, which StockLab uses to calculate ROIC.

How do I read it?

It is an accounting number, not what the company is worth on the stock market. It can even be negative, for example after a company has bought back a lot of its own shares.

Example

$500 million of assets minus $300 million of liabilities leaves $200 million of shareholders' equity: what would be left for the owners, on paper, if everything were sold at its book value and all debts were paid.