Stockholders Equity Growth Rate

Quick Definition

Measures the level of additional equity added to existing company equity.

Stockholders Equity Growth Rate Formula

Explanation of Stockholders Equity Growth Rate

The Stockholder's Equity Growth Rate measures the amount of additional equity that is being added to the equity provided by the stockholders.

Importance of Stockholders Equity Growth Rate

A high, or increasing Stockholder's Equity Growth Rate over several periods is a positive sign, as more of a percentage of equity is being held in stockholder's equity. A decreasing Stockholder's Equity Growth Rate may indicate the company is taking in fewer Net Earnings or is giving out more Stock dividends. A change in Total Stockholders Equity might also cause the rate to decrease, such as a larger than normal dividend dispersment in recent periods.

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