To find this information for a publicly-held company, try searching for the company’s most recent financial report online. It will be available either on their website or on the Securities and Exchange Commission’s website.
Long-term assets include the value of equipment, property and capital assets that are going to be in use for more than one year, minus any depreciation of these assets. Current assets are defined as any receivables, work in process, inventory, or cash. In accounting terminology, any asset that the company has held for fewer than 12 months is a current asset. Sum each category (long term and current assets) first to obtain a value for each and then add the two together to get total asset value. For example, imagine a company with current assets totaling $535,000 ($135,000 cash + $60,000 short-term investments + $85,000 accounts receivable + $225,000 in inventory + $30,000 in prepaid insurance) and $75,000 in long-term assets ($60,000 in stock investments + $15,000 in insurance value). Add these two together to obtain $535,000 + $75,000, or $610,000. This value is your total asset value.
Long-term liabilities are any debts on the balance sheet that don’t require total repayment within a year. Current liabilities are the cumulative total of accounts payable, salaries, interest, and any other accounts due within a year’s time. [5] X Research source Sum each category (long term and current liabilities) first to obtain a value for each and then add the two together to get total liability value. For our example imagine that the same company has current liabilities totaling $165,000 ($90,000 accounts payable + $10,000 salaries payable + $15,000 interest payable + $5,000 in taxes payable + $45,000 current portion of note (short-term debt)) and $305,000 in long-term liabilities ($100,000 in notes payable + a $40,000 bank loan + an $80,000 mortgage + $85,000 deferred income tax). Add these two together to obtain $165,000 + $305,000, or $470,000. This value is your total liability value.
Continuing with the previous example, simply subtract the company’s total liabilities ($470,000) from total assets ($610,000) to get shareholders’ equity, which would be $140,000.
Continuing with the previous example, simply subtract the company’s total liabilities ($470,000) from total assets ($610,000) to get shareholders’ equity, which would be $140,000.
Find this information by searching for the company’s most recent financial report online. For a publicly-held company, this information will be available either on their website or on the Securities and Exchange Commission’s website.
The figure you use to calculate share capital is the selling price of the stock, not its current market value. This is because share capital represents the money that the corporation actually received from the sale of stock. [11] X Research source For example, imagine a company with $200,000 raised from common stock and $100,000 from preferred stock. The total share capital, in this case, would be $300,000. In some cases, this information may be reported separately as common stock, preferred stock, and paid-in capital in excess of par (or additional paid-in capital). Simply add these components together to obtain the value for share capital. [12] X Research source
Retained earnings are generally simply stated as one value by the company. In our example, this value is $50,000.
Like retained earnings, the value of treasury stock generally requires no calculation. In our example, it is listed simply as $15,000.
Continuing with our example, we would add share capital ($300,000) to retained earnings ($50,000) and subtract our $15,000 in treasury shares to get $335,000 as our shareholders’ equity.
