BP's net debt of $ 37.8 billion was 27.4
percent of its shareholder equity plus net debt, compared with 26.8 percent at the end of 2016, and it announced a return on average capital employed for 2017 of 5.8 percent.
These acquisitions have led to destruction
of shareholder equity given the subsequent writedowns and constant restructuring charges experienced by IMN.
Book value per share has grown more quickly, because this
growth of shareholder equity was accompanied by significant share repurchases, which divide the total company shareholder equity over a smaller and smaller number of outstanding shares.
Some
portion of shareholder equity is invested conservatively in fixed income to provide a margin of safety with regard to insurance claims obligations.
If a company's long - term debt burden is 100 %
of its shareholder equity or more, it could be at risk of being too highly leveraged without a strong balance sheet to support it.
After all, the ratio gets a big boost whenever the value
of the shareholder equity, the denominator, goes down.
Gayner wants to eventually get the stock portfolio equal to about 80 %
of shareholder equity, but I think he's probably just taking his time given the market conditions.
Return on equity (ROE)-- The amount of net income returned as a percentage
of shareholder equity.
Return on Equity (ROE)-- The amount of net income returned as a percentage
of shareholders equity.
I think Gayner has mentioned a target of 80 %
of shareholder equity will be in stocks at some point.
The amount of net income returned as a percentage
of shareholders equity.