Average Shareholder Equity
Average shareholder equity is the simple average of the starting shareholder equity value and the ending shareholder equity value of the trading day.
|Shareholder’s Equity (beginning figure)||140,000|
|Shareholder’s Equity (ending figure)||160,000|
|Average Shareholder’s Equity||(140,000+160,000)/2 = 150,000|
The above table shows that the shareholder equity at the beggining is 140,000 and the ending figure is 160,000. Therefore, the average shreholder equity is 150,000.