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Negative equity means it showed last year loses or may be last 02 to 03 year loses.If company profit came the current year but the equity is still negative so its a going concern issue and alert for shareholders and company is borrower from bank than its alert for bankruptcy.
It means that the company has been incurring losses over the years which has lead to erosion of its Equity base. Hence, the equity is negative. The company is bankrupt or near bankruptcy if no fresh capital is pumped.
