What term refers to the value that the owners have in a company?

The term that describes the value that the owners have in a company is owners' equity. This represents the residual interest in the assets of the company after deducting liabilities. Essentially, it reflects the amount that would be returned to shareholders if all of the company's assets were liquidated and all its debts were paid off.

Owners' equity can be considered as the net worth of a business and is crucial for assessing the financial health of a company. It is an important metric for potential investors, as it indicates the value that shareholders could expect from their investment in the company.

For context, net revenue refers to the income generated from sales after deducting expenses like returns and allowances, but it does not indicate ownership value. Stockholder value is often used in the context of the return on investment for shareholders but does not specifically represent ownership equity in the same formal way as owners' equity. The debt ratio measures a company's financial leverage, showing the proportion of a company's assets that are financed through debt, rather than ownership. Understanding owners' equity is fundamental in funeral service education, as it relates to the management and financial assessment of funeral homes and similar businesses.