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 ...

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 ...