Business Pitch Dictionary by pitch.dog
Assets, liabilities & equity · Core

Equity

Also called: shareholders' equity, net assets

ELI5

The residual interest in assets after deducting liabilities.

Used in conversation

“The headline changes once we calculate equity consistently.”

Pitch context

You will see “Equity” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • DiversityDiversity describes representation; equity concerns fair access, treatment and outcomes in light of differing barriers.
  • EquityThe same visible label “Equity” names different concepts.
Sources & evidence · 4

Direct term-level sources and supporting source families.