Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. David Kindness is a Certified Public Accountant (CPA) and an expert ...

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 ...

Retained earnings, as its name implies, is a equity account that mainly comprises a company's cumulative, undistributed earnings. From the purchase of office supplies, the annual raise in employee ...

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 ...

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 profits that are earned by a company but are not distributed out to shareholders as dividends payments. Retained earnings can be used to fund operations, for large capital ...

The accounting concept, retained earnings, is important for any company. But what exactly is it? And as an investor, how can you use it to measure a company's viability as an investment? Let's take a ...

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 ...