Total Common Equity is the portion of a company's equity that belongs to the common shareholders. It is what remains of total equity after removing the claims that rank ahead of them: minority (non-controlling) interests, which are the stakes outside owners hold in consolidated subsidiaries, and preferred equity. It includes common stock, additional paid-in capital, retained earnings and accumulated other comprehensive income, so it captures capital raised above par as well as profits kept in the business. It shows how much of the company's book value the common shareholders actually own. The formula for Total Common Equity is:
Total Common Equity = Total Equity - Minority/Non Controlling Interest - Preferred Equity and Hybrid Capital
Where:
- Total Equity is BS072,
bs_total_equity
- Minority/Non Controlling Interest is BS071,
bs_minority_noncontrolling_interest
- Preferred Equity and Hybrid Capital is BS063,
bs_pfd_eqty_and_hybrid_cptl