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- DictionaryEq·ui·ty/ˈekwədē/
noun
- 1. the quality of being fair and impartial: "equity of treatment"
- 2. the value of the shares issued by a company: "he owns 62% of the group's equity"
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1. a. : justice according to natural law or right. specifically : freedom from bias or favoritism. b. : something that is equitable. 2. a. : the money value of a property or of an interest in a property in excess of claims or liens against it. b. : the common stock of a corporation. c. : a risk interest or ownership right in property. d.
the quality of being fair or impartial; fairness; impartiality: the equity of Solomon. Synonyms: justice, objectivity, justness, disinterest. Antonyms: bias, injustice, prejudice, partisanship, partiality, inequity, discrimination. something that is fair and just:
noun. us / ˈek.wə.t̬i / uk / ˈek.wɪ.ti / equity noun (VALUE) Add to word list. [ C or U ] finance & economics specialized. the value of a company, divided into many equal parts owned by the shareholders, or one of the equal parts into which the value of a company is divided: He sold his equity in the company last year.
EQUITY definition: 1. the value of a company, divided into many equal parts owned by the shareholders, or one of the…. Learn more.
- What Is Equity?
- How Shareholder Equity Works
- Formula and How to Calculate Shareholders' Equity
- What The Components of Shareholder Equity Are
- Example of Shareholder Equity
- Other Forms of Equity
- Private Equity
- Home Equity
- Brand Equity
- Equity vs. Return on Equity
Equity, typically referred to as shareholders' equity (or owners' equity for privately held companies), represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation. In the case of acquisition, it is the value of company s...
By comparing concrete numbers reflecting everything the company owns and everything it owes, the "assets-minus-liabilities" shareholder equity equation paints a clear picture of a company's finances, easily interpreted by investors and analysts. Equity is used as capital raised by a company, which is then used to purchase assets, invest in projects...
The following formula and calculation can be used to determine the equity of a firm, which is derived from the accounting equation: Shareholders’ Equity=Total Assets−Total Liabilities\\text{Shareholders' Equity} = \\text{Total Assets} - \\text{Total Liabilities}Shareholders’ Equity=Total Assets−Total Liabilities This information can be found on the ba...
Retained earnings are part of shareholder equity and are the percentage of net earnings that were not paid to shareholders as dividends. Think of retained earnings as savings since it represents a cumulative total of profitsthat have been saved and put aside or retained for future use. Retained earnings grow larger over time as the company continue...
Using a historical example below is a portion of Exxon Mobil Corporation's (XOM)balance sheet as of September 30, 2018: 1. Total assets were $354,628. 2. Total liabilities were $157,797. 3. Total equity was $196,831. The accounting equation whereby Assets = Liabilities + Shareholder Equity is calculated as follows:
The concept of equity has applications beyond just evaluating companies. We can more generally think of equity as a degree of ownership in any asset after subtracting all debts associated with that asset. Below are several common variations on equity: 1. A stockor any other security representing an ownership interest in a company. 2. On a company's...
When an investment is publicly traded, the market value of equity is readily available by looking at the company's share price and its market capitalization. For private entities, the market mechanism does not exist, so other valuation forms must be done to estimate value. Private equity generally refers to such an evaluation of companies that are ...
Home equityis roughly comparable to the value contained in homeownership. The amount of equity one has in their residence represents how much of the home they own outright by subtracting from the mortgage debt owed. Equity on a property or home stems from payments made against a mortgage, including a down payment and increases in property value. Ho...
When determining an asset's equity, particularly for larger corporations, it is important to note these assets may include both tangible assets, like property, and intangible assets, like the company's reputation and brand identity. Through years of advertising and the development of a customer base, a company's brand can come to have an inherent v...
Return on equity(ROE) is a measure of financial performance calculated by dividing net income by shareholder equity. Because shareholder equity is equal to a company’s assets minus its debt, ROE could be considered the return on net assets. ROE is considered a measure of how effectively management uses a company’s assets to create profits. Equity, ...
- Jason Fernando
- 1 min
[uncountable](formal)a situation in which everyone is treated equally synonymfairness. a society where justice and equity prevail. oppositeinequitysee alsoemployment equity. [uncountable](law, especially British English)a system of natural justice allowing a fair judgement in a situation which is not covered by the existing laws.
3 days ago · equity in British English. (ˈɛkwɪtɪ ) noun Word forms: plural -ties. 1. the quality of being impartial or reasonable; fairness. 2. an impartial or fair act, decision, etc. 3. law. a system of jurisprudence founded on principles of natural justice and fair conduct.
