Retained earnings are the cumulative profits that a business holds onto for operations after any dividends have been paid. Retained earnings refer to the portion of a company’s net income that ...

Depending on the jurisdiction and industry, there may be limitations on how companies can use retained earnings. For example, financial institutions are often subject to strict regulatory capital ...

If retained earnings have fallen, then the result will be greater than the net earnings for the year. The answer represents the total amount of dividends paid. For example, say a company earned $ ...