Glossary
Equity
Definition
Equity is what remains for the owners after the company's liabilities are paid from its assets. It is made up of the share capital, the retained earnings and the result of the current year.
Example. A company with €2,500 of share capital and €1,500 of retained earnings has equity of €4,000.
Why it matters for your company
Equity shows the owners' stake in the company. Dividends and losses change it, so it tells you how much the company is worth on its own books.
Where you see it in Sapita
In the balance sheet, in the equity section at the bottom.