Retained Earnings
Asset symbol is not found or was delisted
Indicator Description
Retained Earnings | = | Beginning RE + Income | - | Dividends |
Retained Earnings In A Nutshell
Retained earnings are important because if you invest in a company, you want to know they are earning money and are able to keep some for themselves. Looking at the balance sheet, of course you want to see some dividends because that means the company is doing well and internal people being incentivized, but you do not want all the money going out.
When a company goes into business or if you yourself go into business, you want to ensure you have earnings. With that, there is also the retained earnings number, which is beginning retained earnings minus dividends.
Closer Look at Retained Earnings
If you are looking at this number and it appears to be small compared to others in the industry, you may want to look at a few things. First, ensure the company has enough money to be paying dividends because if they are doing poorly and money is still going to shareholders, it may not be the best situation. Secondly, you want to take a look at the underlying health of the company and ensure sales and revenue is coming. If there is a critical error cause the low retained earnings, it may be an indication of what is to come. Lastly, this number may be low because they are reinvesting or paying larger dividends due to the success of the company. Be sure to fully understand the story to understand the rhyme and reason for the number.
Some companies pay constant dividends, some pay no dividends, and others pay dividend that are special, such as when the company is doing exceptionally well. The focus on dividends is important as it is a part of the equation and is one of the most controllable parts of the retained earnings.
This numbers is fantastic for fundamental research and should certainly be used in your research. In no way would it hurt looking at this number and it will only bring value. Be sure to look at other areas of the company and their financials because this may not tell the whole story. Retained earnings are important though because the company needs to keep some money for itself. If you get stuck, reach out to an investing community and bounce your ideas off of them. Should that not work, reach out to your investing professional and they can help to point you in the right direction. Retained earnings is a critical part in the balance sheet and needs to be monitored during and after you invest in a particular company.
Other Suggestions
| IVR | Invesco Mortgage Capital | Company |
| IVR-PC | Invesco Mortgage Capital | Company |
| IVRIX | Vy Clarion Real | Mutual Fund |
| IVRS | Ishares Future Metaverse | ETF |
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
| LTC | Litecoin | |
| STETH | Staked Ether | |
| LINK | Chainlink | |
| XLM | Stellar | |
| CRO | Cronos |
Trending Themes
If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment. | USD Crypto Fund Invested one share | |
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |