Definition of Retained earnings:
Profits earned by a company which are not distributed to the shareholders in the form of dividends, but are reinvested in the company or kept in reserves for specific purposes (e.g., Pay off debts or buy fixed assets).
The balance sheet shown in the retained earnings is all retained earnings since the beginning of the business. Retained income is deducted from losses and is also called retained income, retained income, retained income, retained income, retained income, retained income or undivided income. See also retention rate.
Positive profit provides ample space for the business owner or management to use more money than necessary. These profits are often paid to shareholders, but can also be invested in the business for growth. The amount not paid to the shareholders is considered as retained earnings.
Retained earnings (ROE) is the amount of net income that a company accrues after paying dividends to shareholders. The company generates revenue that can be positive (profit) or negative (loss).
How to use Retained earnings in a sentence?
- The decision to maintain profits or distribute them to shareholders is usually left to the company's management.
- Retained earnings (ROE) is the amount of net income that a company accrues after paying dividends to shareholders.
- Despite shareholders' concerns, the company continues to increase retained earnings as it has to repay last year's debt.
- The growth-oriented company cannot pay any profit or very small amount, as it may prefer to use the retained earnings to finance the expansion activities.
- It is important to hand over a portion of your future earnings to the company so that you can maximize profits in the future.
- He wanted to quickly calculate the company's retained earnings, so he needed to raise capital first.
Meaning of Retained earnings & Retained earnings Definition