Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How to Calculate Average Shareholder Equity

By Motley Fool Staff – Updated Apr 29, 2025 at 11:30PM

Key Points

  • Average shareholder equity is calculated using equity figures from multiple periods.
  • This measurement is crucial for a more accurate assessment of company performance over time.
  • Using average equity balances fluctuations like new shares or dividends, affecting ROI calculations.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.