Owners Equity is the difference between a business’s total assets and total liabilities. It represents the net value of ownership in the business, and is an important indicator of a company’s financial health. In simple terms, it’s how much of your business you actually own! Owners Equity reflects the cumulative investment made by shareholders to finance the business, as well as retained earnings that have not been distributed as dividends to shareholders. So when you’re keeping track of your business finances, make sure to keep an eye on Owner Equity – it can tell you all sorts of valuable information!