Financial Glossary

Retained Earnings

Definition

Retained earnings represent the portion of a company�s profit that is not distributed to shareholders as dividends but is reinvested into the business for growth and expansion.

Related Services

Accounting, financial planning, and corporate governance services help businesses manage retained earnings effectively, using them for reinvestment in operations, R&D, or acquisitions.

Problem and Application

Retained earnings are a key component of a company�s financial health, providing a source of internal funding for business growth without taking on debt.

Conclusion

Retained earnings support long-term business growth and financial stability by reinvesting profits into key business areas.