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 ?
Moonitz 1951, 80-81) for the consolidated balance sheet and income statement favor a consolidated retained earnings statement under the parent company theory, as illustrated in Panel A of Exhibit 5.
Contractual Agreements: When a company issues long-term bonds, the bond provisions or debt covenants often require the periodic appropriation of a certain amount of retained earnings.
As alluded to above, many S corporations will have fewer than four retained earnings accounts.
Without tapping into legal capital reserves, many Japanese banks, including SMBC, will not be able to secure sufficient retained earnings to pay out full-year dividends on preferred shares held by the government, industry officials said.
In the second case, where the reissue price is lower, the difference may be debited to the Retained Earnings account as an alternative to a reduction from the Paid-in Capital account.
Reflecting differences in dividend policy as well as changes in relative profitability, retained earnings as a share of assets at small and medium-sized banks continued at levels near those of 1988 but fell for large banks and turned negative for money center banks (table 7).
After payment of the third quarter of 2014 dividend, the FHLBNY's level of unrestricted retained earnings will be approximately USD 800.
43 allows the company to "accomplish, in its books of account, substantially what might be accomplished in a reorganization by legal proceedings--that is, elimination of a deficit in retained earnings and establishment of a new basis of accounting for its assets and liabilities.
In addition, half of the capital requirement must be met with "core" capital, defined as common equity, retained earnings, and perpetual preferred stock.
After payment of 2Q14 dividend, the FHLBNY's level of unrestricted retained earnings will be approximately USD 789.
Because GAAP financial statements have significant predictive value, interested parties can track trends in sales or revenues, dividends, retained earnings and book values.
In accordance with the Bank's Retained Earnings and Dividend Policy, the Bank retains in restricted retained earnings the cumulative net gains on these financial instruments, including certain other gains and losses that are deferred and amortized for dividend purposes (after REFCORP and AHP assessments and other adjustments).