Retained Earnings: Understanding Your Company’s Savings
Did you know retained earnings are more than just numbers on your balance sheet? In fact, they’re the profit that’s left after paying costs and dividends. This is seen as equity on the balance sheet1. Companies can use retained earnings to start new projects or pay off debts. This means they have a key role in funding the business without needing loans1. These accumulated earnings are vital for checking a company’s health. They show the money available to put back… Read More »Retained Earnings: Understanding Your Company’s Savings