Equity shows the Equity per Share.
Equity per Share = (Total Assets-Total Liabilities) / Number of Shares
Equity is also referred to as the company’s book value and is found in the company's balance sheet. The Equity can also be understood as the company's Net Wealth.
Large equity means that the company is stable in bad times and does not have to take out a loan to survive. The company increases its equity by saving its profit.
Things to keep in mind
- A high value is good.