Shareholders' equity is what is left of the company's assets after all its liabilities, on the books. It is built from the money shareholders put in, plus the profits the company has kept, less losses, dividends and share buybacks.
How Listed shows it
As reported, under the XBRL concept StockholdersEquity, or EquityAttributableToOwnersOfParent for IFRS filers. This is the equity of the company's own shareholders. Where partly owned subsidiaries have other owners, their share (non-controlling interests) is excluded. It is an amount on the balance sheet date.
Reading it
- Book value is not market value. Equity reflects accounting values, mostly at historical cost. Many valuable things, such as brands and internally developed technology, are not on the balance sheet at all.
- Negative equity happens. Years of losses can push equity below zero, but so can large share buybacks or dividends funded with debt at a profitable company. Negative equity alone is not proof of distress; read the balance sheet and the cash flow statement together.
When it says "not reported"
The company reports only equity including non-controlling interests, or uses a concept of its own. Partnerships report partners' capital instead.