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Retained earnings

• The cumulative total of all earnings, net of dividends, that have been retained and reinvested in the firm since its inception.

• Generally the sum of earnings since the business began less dividends paid the owners

• The earnings retained by a company after payment of all expenses and dividends. Retained earnings grow as they accumulate year after year. They are shown on the company's books as a cumulative amount in the Balance Sheet section under Shareholder Equity.

• Accounting earnings that are retained by the firm for reinvestment in its operations; earnings that are not paid out as dividends.

 
 Embedded terms in definition
 Accounting earnings
Balance sheet
Books
Dividends
Earnings
Equity
Expenses
Firm
Its
Net
Out
Reinvestment
 
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