retained earnings

Profits kept inside

Retained earnings are the portion of a company's profits kept in the business rather than distributed to shareholders as dividends.

This accumulated total appears on the balance sheet and represents funds available for reinvestment, debt repayment, or future operations: The company used retained earnings to fund expansion.

Opposites
profit distribution

retained earningsdividends

Profits paid to shareholders

cash dividends · dividend payments · stock dividends

balance sheet position

retained earningsdeficit

Amount still owed

operating losses

capital flow direction

retained earningsshare buybacks

Company reacquiring its equity

debt repayment

Family

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Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G