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Glite Dictionary
owner's equity

owner's equity

7.0
The amount of value the owner has in a business after debts are paid
  • noun
  • /ˈoʊnərz ˈɛkwɪti/
  • Specialized
translation icon : patrimonio del propietario
  • Investors often look at owner's equity to determine the financial health of a company before deciding to invest.

Examples

  • She carefully calculated her owner's equity to understand how much she had invested in her business.

  • Ending net worth reflected the owner's equity in the vessel and in other personal property at the end of the planning horizon.

    Academic text (1991)

  • The accountant prepared a report detailing the owner's equity, which showed the business's net worth after liabilities were deducted.

Synonyms

equity
vsowner's equity
  • Specialized
173 5.4

The value of what you own in a house or company after you pay off debts

is the business-specific invested value computed as net assets minus liabilities

How Much

owner's equity
  • Specialized
7.0

Surface Forms

owner's equity singular
owner's equities plural

Morphology

owner's + equity

This is a straightforward possessive composition: 'owner's' marks possession and 'equity' denotes the owner's stake or net value, so the combined meaning is simply the owner's share of net assets. The construction is compositional and cross-linguistically common, so a B1 learner who knows both constituent words can readily infer the MWE's meaning.

Etymology

Owner's equity comes from a simple image: if you sell a business and pay all its debts, what is left belongs to the owner, and that leftover value is the equity. So, owner's equity means the 'owner's share of the business value'.