Figure it out • 23d
Today's term of the day: Equity Equity, in simple terms, is the money that is returned to all the shareholders of a company, if all the company's assets are liquidated and liablities are paid off. It is also a measure of the financial health of a corporation. From the definition, it's kinda obvious how to calculate equity: It's literally just assets - liabilities. If assets exceed liablities, the company is said to be solvent and is also said to have positive equity. If liabilities exceed assets, the company is said to be insolvent and is also said to have negative equity. All in all, equity is a fancy term that tells you how much of a company belongs to the shareholders
Trying to do better • 8m
Day 11 About Basic Finance and Accounting Concepts Here's Some New Concepts Equity, in finance, represents the ownership value held by shareholders in a company. It is essentially the difference between a company's total assets and its total liabili
See MoreCA Aspirant|Content ... • 21d
Daily dose of financial ratios by Anirudh Gupta Debt/equity ratio =Total debt/Shareholders equity Purpose: It helps users of financial statements understand how much debt the company is using for every ₹1 of equity invested by shareholders. Cred
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The Institute of Chartered Accountants of India • 1y
Have you read the book "Rich Dad, Poor Dad" written by "Robert Kiyosaki" . he is a genius. He admitted to having more than $1.2 billion in debt 🤯. you might have watched his yt Shorts claiming that. He views this debt as a strategic move and a par
See MoreKeen Learner and Exp... • 3m
Complicated Business Terms Simplified PART 2 1️⃣ Equity: 📌 The owner’s share in a company after subtracting liabilities from assets. 2️⃣ Cash Flow: 📌 The actual movement of money in and out of a business, crucial for daily operations. 3️⃣ Reven
See MoreFull Stack Devloper ... • 1y
What is FPO? FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors. It is different from an IPO where the company issue
See MoreFigure it out • 24d
Today's term of the day: Dividends When a company makes a profit, it can choose to share a portion of the profit with its shareholders as a reward for their investment. This "reward" given by the company to it's shareholders is called a dividend Di
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