Shareholder equity equals total assets minus total liabilities.
Not exact matches
With no debt,
shareholders»
equity is
equal to invested capital.
The following chart shows the debt to
shareholders equity ratios for each of the stocks highlighted as a liquidation candidate above, rebased so that the last year's number
equals 100.
Sure, return on
equity would suffer (and the bank may have just doubled down on its bad loans...)-- but all things being
equal, this seems a far better option than massive dilution, or a possible
shareholder wipe - out.