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Finance · Basic Finance

Retained Earnings

Noun
US US /rɪˈteɪnd ˈɜːnɪŋz/ GB UK /rɪˈteɪnd ˈɜːnɪŋz/
Finance Basic Finance beginner

Definition

Cumulative net profits kept in the company rather than paid out as dividends.

Visual Reference

Retained Earnings illustration

Detailed Explanation

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Example

Retained Earnings is a fundamental concept used in financial statements and business planning.

In Practice

Also known as: Ploughed-back Profit. Closely related to Dividend, Equity.

Video Explanation

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Case Study

Retained Earnings - key concept in Basic Finance.

Word Usage

Business reinvestment; Balance sheet; Corporate growth

Finance Basic Finance

Use Case

Applied in Basic Finance contexts: Business reinvestment; Balance sheet

Also Known As

basic-finance

Synonyms

Ploughed-back Profit

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