What is shareholders' equity on a balance sheet?

On the balance sheet, shareholders’ equity is broken up into three items – common shares, preferred shares, and retained earnings. Shareholders’ equity is the shareholders’ claim on assets after all debts owed are paid up. It is calculated by taking the total assets minus total liabilities.

What is stockholders' equity?

This is an account on a company’s balance sheet that consists of the cumulative amount of retained earnings, contributed capital, and occasionally other comprehensive income. Basically, stockholders' equity is an indication of how much money shareholders would receive if a company were to be dissolved, all its assets sold, and all debts paid off.

What is the value of shareholders' equity?

The value of $60.2 billion in shareholders' equity represents the amount left for stockholders if Apple liquidated all of its assets and paid off all of its liabilities. An alternative calculation of company equity is the value of share capital and retained earnings less the value of treasury shares.