Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Equity
« Back to Glossary IndexCategory: Accounting and Finance
A company’s balance sheet comprises three key elements: assets, liabilities, and shareholder’s equity. Equity, or shareholder’s equity, is a key component of the balance sheet and is defined as the amount of assets remaining after all liabilities have been paid. The basic formula is Shareholder’s Equity = Assets – Liabilities. Shareholder’s equity is an important metric in business valuation as it provides insights into the financial health and stability of a company. Investors and analysts often use shareholder’s equity as one of several metrics when assessing the overall value and risk associated with a business.
« Back to Glossary IndexSynonyms:
Shareholder's equity, owner's equity, stockholder's equity
Acronym:
SE
French Translation: