Retained earnings


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Related to Retained earnings: Appropriated Retained Earnings

Retained earnings

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

Undistributed Profits

The amount of a publicly-traded company's post-tax earnings that are not paid in dividends. Most earnings retained are re-invested into the company's operations. Year-on-year tracking of the ratio of undistributed profits to dividends is important to fundamental analysis to investigate whether a company is increasing or decreasing its rate of re-investment. Undistributed profits form part of a company's equity, and are owned by shareholders. They are also called retained earnings, accumulated profits, undivided profits, and earned surplus.

retained earnings

The accumulated net income that has been retained for reinvestment in the business rather than being paid out in dividends to stockholders. Net income that is retained in the business can be used to acquire additional income-earning assets that result in increased income in future years. Retained earnings is a part of the owners' equity section of a firm's balance sheet. Also called earned surplus, surplus, undistributed profits. See also accumulated earnings tax, restricted retained earnings, statement of retained earnings.

Retained earnings.

Retained earnings, also known as retained surplus, are the portion of a company's profits that it keeps to reinvest in the business or pay off debt, rather than paying them out as dividends to its investors.

Retained earnings are one component of the corporation's net worth and increase the supply of cash that's available for acquisitions, repurchase of outstanding shares, or other expenditures the board of directors authorizes.

Smaller and faster-growing companies tend to have a high ratio of retained earnings to fuel research and development plus new product expansion. Mature firms, on the other hand, tend to pay out a higher percentage of their profits as dividends.

References in periodicals archive ?
On the other hand, the value of retained earnings in six companies ranged between 100-150 percent of their capitals in Q3, 2013 as follows: Yansab (Yanbu National Petrochemical Company) realized SR8 billion, or 142 percent of its capital (SR5.
430,000 small and medium enterprises will receive the largest impact, since many of them don't allocate their retained earnings or allocate at most 40% of such earnings.
With those changes, the final addition to its retained earnings in the capital accounts of the state-backed corporation's postal insurance division for fiscal 2003 will be cut to 4.
Legal Requirements: Certain states require restrictions of retained earnings when a corporation reacquires its own stock as treasury stock.
Distributions for GAAP purposes would be reflected as a reduction of paid-in-capital, not retained earnings.
The Fund also has undistributed retained earnings from net investment income of $582,585, equal to $0.
15 billion Members United Corporate FCU and $3 billion Southeast Corporate FCU are both covering new OTTIs with existing retained earnings, the credit unions announced in separate releases July 26.
UFJ Bank said Thursday it will dip into its legal capital reserves for about 630 billion yen to replenish its retained earnings, the key source of funds for dividend payments, in a bid to boost its finances.
Midwest showed $116 million of RAP-based retained earnings but no GAAP-based retained earnings.
By contrast, the SOP requires that only dividends on allocated ESOP shares be charged to retained earnings.
The technique will become even more valuable (assuming a GmbH has retained earnings that were originally taxed at 50% or 56%) if the lower German distribution tax rate is reduced to 30%.
The accounting rules for S corporation distributions are confusing because numerous retained earnings accounts must be maintained.