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Does the shareholders equity represent the savings a company has accumulated through the years?

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تم إضافة السؤال من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
تاريخ النشر: 2014/03/16
Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

No. The number which appears in the Shareholder’s Equity of a company that was founded several years ago is just a number which balances the balance sheet. It does not have a clear economic meaning.

 

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