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.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
EXHIBIT 1 Detected Misstatements That (Over)/Understate ABC Corporation's Retained Earnings Item Description 12/31/08 12/31/07 A Misstatement of inventory and cost of $12 $10 sales, exclusion of overhead costs B Misstatement of receivables and (14) 16 sales, sales cutoff errors C Misstatement of accrued liabilities (34) 18 and expenses, questionable valuation assumptions D Net (over)/understatement of retained $(36) $44 earnings Calculating the misstatement of ABC's 2008 income under the iron curtain approach is quite straightforward and represents the effects of errors in the end-of-period balance sheet accounts.
The opening balance in the 20X6 statement of retained earnings should he adjusted by $2,800 to reflect the change in inventory methods.
First, the company invested $1,000,000 of retained earnings in the LLC (1).
(3) The bank's investment in a financial subsidiary shall not include retained earnings of the financial subsidiary;
It demonstrates that under the entity theory, consolidated retained earnings include the separate equities of both the parent company (or controlling) stockholders and the minority interest (or controlling stockholders) of its subsidiaries.
No poll seems to have asked, directly or indirectly, whether respondents favored the double taxation of retained earnings. Public opinion data therefore do not reveal whether the public favors true single-level taxation or favors double-level taxation of retained earnings and single-level taxation of dividends.
Retained earnings of pharmaceutical enterprises in 2018 amounted to 19,952,500 soms.
About 16.3 percent of capital base are retained earnings and 24.7 percent were assigned capital for foreign banks.
A low retained earnings to total assets means the company may be accumulating losses resulting in falling retained earnings while a low earnings before tax and interest indicates low return on assets.
The FHLBNY's retained earnings increased during the quarter by $53.2 million to $1.7 billion as of September 30, 2018, of which $1.1 billion was unrestricted retained earnings and $0.6 billion was restricted retained earnings.
The company mentioned that retained earnings before the distribution was USD102.3m as of 30 June 2018 and retained earnings will reach USD97.3m after the distribution.
In response to another question, Mr Zia conceded that the JIT report did not mention quantification of cash flow or retained earnings of the Hill Metal Establishment (HME) of any financial year.