A statement of shareholders’ equity is a simple calculation obtained from a company’s balance sheet. It basically summarizes the ownership of a company and can be used to quickly determine the ...

2. A statement of shareholders’ equity can tell you how well you’re running your business. A statement of shareholders’ equity is helpful for gauging how well the business owner is running the ...

Equity is ownership in a company -- membership interests in an LLC, partnership interests in a partnership and stock in a corporation. When you issue equity, you raise capital to provide funds for ...

An example to see the calculation in action Let's assume that a company had total revenue of $1 million, and we found the following information from the owners' equity section of its balance sheet.