Owners Equity, also known as Shareholders Equity or Networth, is a cornerstone of business accounting. It’s the equation that describes the financial structure of a company and shows the total value of its assets minus its liabilities. In other words, it’s a measure of how much money the owners have invested into the business and how much they stand to gain or lose should the business succeed or fail. The equation is simple but powerful: Owners Equity = Assets – Liabilities. So if you’re an owner of a business and you want to know your financial health, this equation is the starting point.