Net income is equal to revenues minus expenses. Corporate net income minus dividends declared is equal to that corporation's change to its retained earnings due to the company's running of its ...

Retained earnings are all the profits a company has earned but not paid out to shareholders in the form of dividends. These funds are retained and reinvested into the company, allowing it to grow, ...

Here's how to show changes in retained earnings from the beginning to the end of a specific financial period. Many, or all, of the products featured on this page are from our advertising partners who ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

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 ...

Revenue and retained earnings provide insights into a company’s financial performance. Revenue is a critical component of the income statement. It reveals the "top line" of the company or the sales a ...

Retained earnings are the cumulative profits that a company has kept to reinvest in its business. Some earnings are distributed to shareholders as dividends. The remainder is considered retained ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training ...