Many investors almost completely ignore the financial statements that companies report. Yet it's important to understand the ins and outs of companies in which you invest, and knowing the basics of ...

Business investors, managers and owners are interested in the balance of stockholders' equity shown on a company's balance sheet, because it represents the value of a corporation's net assets, or its ...

If a company were to theoretically sell all of its assets at book value, and use the proceeds to pay off all its liabilities, the money left over would represent the company's stockholders' equity.

Stockholders' equity is the value of assets a company has remaining after eliminating all its liabilities. Companies with positive trending shareholder equity tend to be in good fiscal health. Those ...

When a corporation's board of directors declares a cash dividend to its shareholders, the balance sheet account "retained earnings" is reduced by the amount of the dividend. Since retained earnings is ...

Balance sheets consist of assets, liabilities, and shareholders' equity, revealing financial health. Shareholders' equity equals assets minus liabilities and reflects theoretical investor value if a ...

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

Stockholders' equity is what's left when you take a company's assets and subtract its liabilities. Therefore, knowing the ending stockholders' equity balance for a particular time period gives you a ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. As the name implies, a balance sheet should reveal ...

Both involve a company’s finances, but their differences are significant Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon ...

Stockholders' equity is what's left when you take a company's assets and subtract its liabilities. Therefore, knowing the ending stockholders' equity balance for a particular time period gives you a ...

If you’re interested in investing, you’ve probably read quite a few articles that say “do your homework” before buying a stock. Reading and understanding a balance sheet is part of that homework.