Most business owners are familiar with the term “net income.” But what about “retained earnings?” This financial metric is just as important as net income, and it’s essential to understand what it is ...

Retained earnings represent the accumulated net income your business keeps after paying all costs, expenses and taxes. The retained earnings balance changes if you pay your stockholders a dividend. If ...

Net income tells you how profitable a company is. Retained earnings is a number that shows an accumulation of profits for a company from year to year. When looking at a balance sheet, the left side of ...

Retained earnings are profits of a business that are not paid out to the owners but instead are retained by the business for several reasons, such as for investment, business expansion or the purchase ...

Discover how return on retained earnings (RORE) measures reinvested profits and indicates a company's growth potential. Learn its impact on business efficiency.