The owners' stake in the business — what would remain if all liabilities were paid off. It reflects owner contributions plus the cumulative net effect of profits and losses, less distributions or withdrawals where applicable. Formula: Total Assets − Total Liabilities. Also called net worth or shareholders' equity.
What to check
Check the statement date, classification, and whether the balance agrees with your accounting records.
Where this connects to Impresa
You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Financial Health guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.