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Thursday, 04/13/2023 11:23:28 AM

Thursday, April 13, 2023 11:23:28 AM

Post# of 141614
Very interesting: Retained Earnings $704,241.26

- Retained earnings (RE) are the amount of net income left over for the business after it has paid out dividends to its shareholders.
- The decision to retain the earnings or distribute them among shareholders is usually left to company management.
- A growth-focused company may not pay dividends at all or pay very small amounts because it may prefer to use retained earnings to finance expansion activities.
- Companies may choose to use their retained earnings for increasing production capacity, hiring more sales representatives, launching a new product, or share buybacks, among others.
- Retained earnings are an important variable for assessing a company’s financial health because it shows the net income that a company has saved over time, and therefore has the ability to reinvest in the business or distribute to shareholders.


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