The Ending Owner’s Equity Formula is a financial tool used to calculate the owner’s equity position at the end of an accounting period. This calculation helps entrepreneurs, small business owners, and other business entities understand the financial health of their company. Using the formula, one can accurately determine the net assets of a company. This figure represents the amount of money that would remain after all liabilities of the company have been paid off. Knowing this key information allows entrepreneurs and small business owners to make informed decisions about their company’s future.