Total Equity refers to the net assets owned by shareholders.
Total Equity = Preferred Stock + Common Stock + Capital Surplus
+ Retained Earnings Total Equity and Total Liabilities are the
two components for Total Assets: = Total Shareholders Equity +
Total Liability = Total Current Assets + Total Long Term Assets
Total equity is used to calculate book value per share: Book
Value per Share = (Total Equity-Preferred Stocks)/ Total Shares
Outstanding. The ratio of a companys debt over equity can be
used to measure how leveraged this company is: Debt-to-Equity =
(Long Term Debt + Current Portion of Long Term Debt)/Total
Equity.