Definition
The cumulative profits a company has kept rather than distributing to shareholders as dividends—basically the corporate equivalent of money in the mattress. It's how companies fund growth without begging investors for more cash.
Example Usage
Apple's retained earnings exceeded $100 billion, giving them enough cushion to buy small countries if the mood struck.
Origin
Basic accounting concept since the development of corporate structures in the 17th century.
Fun Fact
Negative retained earnings (accumulated losses) are called a 'deficit,' which sounds much less embarrassing than 'we've lost more money than we've ever made.'
Source: Financial statement terminology
Related Terms
Translate This Term
See “retained earnings” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator