Learn how to find and calculate retained earnings , the cumulative profits or net earnings a company has produced over time after accounting for any dividends paid to shareholders. Retained earnings offer insights into a company's financial health and future prospects, and can be used for expansion, investment, debt reduction, or share repurchasing. Learn what retained earnings are, how they are calculated, and how they affect the balance sheet and income statement. See examples, video explanation, and financial modeling applications. Retained Earnings : Definition, Formula and Examples Retained earnings represent a crucial component of a company's financial health and strategic planning. This comprehensive guide explores the concept of retained earnings , its calculation, significance, and impact on business finances. Understanding retained earnings is essential for financial professionals, investors, and business managers alike in interpreting financial health. What are Retained Earnings? Retained Earnings are that part of the profits of an organisation , which remains with it after meeting all its operating expenses and paying out dividends to all the shareholders.
