Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.
 | | | Retained Earnings | | Retained earnings refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders' equity on the balance sheet. The formula calculates retained earnings by adding net income to, or subtracting any net losses from, beginning retained earnings, and subtracting any dividends paid to shareholders. | | | Breaking it Down: | | In most cases, companies retain earnings in order to invest them into areas where the company can create growth opportunities, such as... Read More | | | Related to "Retained Earnings" | | | | | | | | | Stockholders' Equity | | The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. Read More | | | | | Net Loss | | The result that occurs when expenses exceed the income or total revenue produced for a given period of time. Read More | | | | Dividend | | A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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