Retained earnings: Are accumulated profits that companies reinvest instead

Retained earnings are accumulated profits that companies reinvest instead of paying as dividends , helping finance growth, improve stability, and reduce debt, though decisions may impact shareholder satisfaction and financial ratios like ROE and payout ratios. Find out everything about retained earnings including the formula, features, and factors that affect it. Plus, learn how to calculate it below. Read on! Retained earnings are the profits left over for a business after paying dividends to shareholders. Learn how to calculate retained earnings , what they can tell you about a company's financial health, and how management can use them. Retained earnings are the profits a company keeps after paying dividends to shareholders. Learn how to calculate retained earnings , see examples, and understand their relevance and uses for investors and businesses.