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WordNet-Online
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Definitions from the WebTerm: Retained EarningsDefinition:Retained earnings refer to the portion of a company's profit that is kept or retained for future use rather than being distributed to shareholders as dividends. Senses:Sense 1: Business FinanceIn the field of business finance, retained earnings represent accumulated profits that have not been distributed as dividends to shareholders. Example sentence: "The company's strong financial performance allowed them to accumulate significant retained earnings over the years." Sense 2: AccountingIn accounting, retained earnings are shown as a line item on the balance sheet and are considered a part of the equity of the company. Example sentence: "At the end of the fiscal year, the balance sheet revealed a substantial increase in retained earnings, indicating the company's profitability." Sense 3: Corporate FinanceFrom a corporate finance perspective, retained earnings can be reinvested back into the company for expansion, research and development, or debt reduction. Example sentence: "The decision to utilize retained earnings for a new marketing campaign led to increased brand recognition and higher sales." | ||||
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