Meaning of the word "retained earnings" in English

What does "retained earnings" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

retained earnings

US /rɪˈteɪnd ˈɜːrnɪŋz/
UK /rɪˈteɪnd ˈɜːrnɪŋz/
"retained earnings" picture

Plural Noun

1.

the accumulated net income of a corporation that is retained by the corporation and not distributed to shareholders as dividends

Example:
The company decided to reinvest its retained earnings into research and development.
Understanding retained earnings is crucial for financial analysis.
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