Ben McClure is a seasoned venture finance advisor with 10+ years of experience helping CEOs secure early-stage investments. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in ...

Retained earnings refer to the amount of net income that a business has after it has paid out dividends to its shareholders. Businesses generate earnings that are either positive or negative. Positive ...

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 ...

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 ...

While paying dividends to shareholders is one way to use profits, aiming for higher retained earnings can be a more effective long-term strategy for creating shareholder value. In addition to ...

Net working capital and retained earnings are both important indicators of a company's health. Net working capital describes a company's liquidity -- how well it can pay its bills. Retained earnings ...

Retained Earnings is a critical financial metric that reveals the cumulative net earnings a company has retained over time, rather than distributed as dividends to shareholders. This amount represents ...