Quick Definition
Measures how a company has structured itself to conduct operations over the long term.
Stockholders Equity Formula
Explanation of Stockholders Equity
The Stockholder's Equity Ratio measures the company's long-term viability by reviewing its acquired assets and equity that has been added to the company.
Importance of Stockholders Equity
A high, or increasing Stockholder's Equity Ratio is usually a positive sign, indicating the company has a better ability to pay debt obligations, unplanned expenses, and other large sum payments.
