A company’s retained earnings statement is a financial statement that shows how the company’s net income is distributed between dividends paid to shareholders and retained earnings, which are the amount of profit that is reinvested in the company. Retained earnings are part of the company’s equity, and they reflect the accumulated earnings that the company has generated over its history, minus any dividends or distributions. Retained earnings can be used by the company for various purposes, such as expanding its operations, developing new products, paying off debt, or buying back shares1
References = Canadian Investment Funds Course, Unit 5: Types of Investments, Lesson 3: Equity Securities, Section 5.3.4: Financial Statements
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