How to Calculate Stockholders’ Equity for a Balance Sheet The Motley Fool
- 07-06-23
- By: izzmar
- Category: Bookkeeping
- 0 comment
The stockholders' equity account is by no means a guaranteed residual value for shareholders if a company liquidated itself. While there are exceptions – e.g. dividend recapitalization – if a company’s shareholders’ equity remains negative and continues to trend downward, it is a sign that the company could soon face insolvency. Stockholders' equity is equal to a firm's total assets…