Owner’s Equity Formula is a fundamental formula used to calculate business equity. In essence, it takes the total assets owned by an individual or company and subtracts the liabilities in order to determine the owners’ equity. It provides businesses with insight into their financial status and can be used to track how well their investments are performing. By comparing a company’s equity over time, it’s possible to gain insights into their long-term growth prospects. In short, businesses should strive to keep a healthy balance of owner’s equity to ensure sustainable profitability!