Retained Earnings

Posted in Finance, Accounting and Economics Terms, Total Reads: 1313

Definition: Retained Earnings

Retained earnings is the money from the net income of the company that is not paid out as dividend to its shareholders but hold by the company in order to reinvest in its growth or to pay debt.

In the balance sheet it is recorded under the shareholder’s equity. It is calculated as


Retained Earnings = Beginning Retained Earnings + Net Income – dividends

Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Retained Earnings. The Management Dictionary covers over 7000 business concepts from 6 categories.

Share this Page on:

Similar Definitions from same Category: