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How To Calculate Retained Earnings? Guide, Formula, and Examples

elenajames on Business Post - The retained earnings surge whenever your business makes a profit and plunge each time you withdraw some from these profits as dividend payout.

Retained earnings can be a great way to fund your company's growth and avoid outflow. When you retain profits, it means that instead of paying off debt or enriching shareholders with them, the money stays within this economic unit known as "the firm." This increases its chance for success by not having access only on what was earned from operations but also any additional funds which may come about due circumstances such as inflation; otherwise known sneaker waves goodbye!

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