What is the correct way to use its?

The pronoun its is a possessive pronoun and a possessive adjective.

A possessive pronoun takes the place of a noun that belongs to someone or something.

The possessive pronouns are: mine, yours, his, hers, its, ours, theirs.

A possessive adjective is placed before a noun to describe that noun as belonging to someone or something.

The possessive adjectives are: my, your, his, her, their, its.

The pronoun its is a third person, singular pronoun.

Examples for its:

The book was half price because its cover was torn. (possessive adjective)

Its was the only one with a torn cover. (possessive pronoun)