How to Find Negative Retained Earnings in a 10-K – Does it Indicate Distress?

Stockholders’ equity, also called book value, is the company’s assets minus its liabilities. We talk about tangible book value when we value investors discuss shareholders’ equity. But what happens if a company has negative retained earnings, which drives the shareholder’s equity negative? Does this happen? Quick answer: you bet! Last week we discussed the statement […]