Definition Retained Earnings. Description.
Retained Earnings are accumulated profits that are
not paid out as dividends to the shareholders. They are kept to accumulate
as working capital. They may or may not be reinvested in the business. On
the balance sheet they are accounted for as Ownership Equity.
A firm may decide to retain profits for basically two reasons:
-
It believes it has good investment opportunities (offering
better returns than the market).
-
There are tax benefits to be expected from postponing dividend
payout.
Also called Earned Surplus or Undistributed Profits.
|
Here you will find interesting and educational discussions.
|
|
|
Here you will find the most valuable ideas.
|
|
|
Here you will find high-quality advice from experts.
|
|
|
Here you will find powerpoint presentations, micro-learning videos and further information sources.
|
|
Financial Statement Analysis | Ratio Analysis
Ratio Analysis, Finanical Statement Analysis...
|
|
|
|
| |
| |
News about Retained Earnings
|
|
|
|
| |
Videos about Retained Earnings
|
|
|
|
| |
Presentations about Retained Earnings
|
|
|
|
| |
Books about Retained Earnings
|
|
|
|
| |
More about Retained Earnings
|
|
|
|
|
|
Compare with:
Dividend Payout Ratio |
Unissued Stock
|
|
|
Special Interest Group Leader
|
|
|
|
|
|
|
|
