Shareholder Equity is a measure of a company's net worth that represents the portion of its assets that belong to its owners, also known as shareholders. It is calculated by subtracting a company's total liabilities from its total assets. The resulting figure represents the residual value that would be left over for shareholders if the company were to sell all of its assets and pay off all of its debts.

Shareholder Equity is an important metric for investors and financial analysts as it provides insight into the financial health of a company. It indicates how much of the company's assets are available to shareholders in the event of a liquidation or sale. A high Shareholder Equity value indicates that a company has more assets than liabilities, which is generally seen as a positive sign.

There are various components that contribute to Shareholder Equity, including:

• Share capital: the amount of money raised by issuing shares to investors.
• Retained earnings: the portion of the company's profits that are reinvested back into the business instead of being paid out as dividends.
• Reserves: funds set aside for specific purposes, such as contingencies or future investments.

Other comprehensive income: gains or losses that are not included in the company's income statement, such as changes in the value of certain investments.

In summary, Shareholder Equity is an important measure of a company's financial health and represents the portion of a company's assets that belong to its owners. It is calculated by subtracting a company's total liabilities from its total assets and is made up of various components, including share capital, retained earnings, reserves, and other comprehensive income.