Balance Sheet/Shareholders' Equity
($ in millions)
Additional Paid in Capital
-> Retained Earnings
Total Shareholders' Equity
- General Motors shows a negative number because of the poor economics of the auto business, which causes the company to lose billions.
- Microsoft shows a negative number because it decided that its economic engine is so powerful that it doesn't need to retain the massive amount of capital it has collected over the years and has instead chosen to spend its accumulated retained earnings and more on stock buybacks and dividend payments to its shareholders.