Total Equity
Definition:
Total equity is the value of all the assets that a company owns, minus the value of all its liabilities. It is also known as shareholders' equity or net worth. Total equity is a measure of the company's financial health, and it is used to calculate various financial ratios, such as return on equity (ROE).
Formula:
Total Equity = Total Assets - Total Liabilities
Example:
For example, if a company has total assets of $100 million and total liabilities of $50 million, then its total equity would be $50 million.