What are Retained Earnings?
Cfefinances
Retained Earnings are the cumulative earnings a company has reinvested in the business rather than paid out as dividends. The retained earnings balance reflects how net income (or loss) and dividend distributions have affected the company's financial position over time. It equals accumulated revenues minus accumulated expenses and dividends since the company's inception.
Think about profits a company keeps and reinvests instead of paying out as dividends. They build up over the company's life as earnings minus dividends.