Ending stockholders’ equity formula is an accounting equation that shows the total of a company’s liabilities, its owners’ equity, and its retained earnings at the end of an accounting period. In other words, the equation indicates how much of your business assets belong to you, free from any debt or other obligations. At simplest terms, this formula should always equal zero, as it represents the balance between assets and liabilities. To calculate ending stockholders’ equity, start with the beginning stockholders’ equity figure of your business and add in any net income or profits for the period, then subtract dividend payments and any other losses. The resulting number will be your ending stockholders’ equity. With this figure, you can get an understanding of the overall financial health and stability of your business.