How To Calculate Total Owner’s Equity Or Stockholder Equity

Total Owner’s Equity or Total Stockholder equity is the Difference between Assets and Liabilities. From the Basic Accounting Equation, we get:

Assets = Liabilities + Owner’s Equity

Owner’s Equity = Assets - Liabilities

Owner’s Equity, in case of Sole Proprietorship or Partnership business is also calculated from Statement of Owner’s Equity while Equity or Stockholder Equity is also found out by Preparing Statement of Changes in Equity.

There is another way to find out the value of total Equity is to use Equity ratio (Total Shareholder Equity / Total Assets).