1--- 2meta: 3 date: false 4 reading_time: false 5title: "Retained Earnings" 6date: 2023-10-07 7description: "The part of company profits which is not paid out in taxes or dividends, but is reinvested back into the business." 8tags: ["Finance", "Accounting", "Corporate Finance"] 9--- 10 11## Background 12 13Retained earnings refer to the proportion of net earnings that a company keeps to itself, rather than distributing it among shareholders as dividends. This retained portion is utilized by the company to reinvest in its own operations, finance new projects, or improve its balance sheet.