Retained Earnings

The Retained Earnings Fundamental Analysis lookup allows you to check this and other indicators for any equity instrument. You can also select from a set of available indicators by clicking on the link to the right. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Please continue to Equity Screeners to view more equity screening tools.

Investor Retained Earnings 

 
Refresh
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Retained Earnings 
 = 
Beginning RE + Income 
Dividends 

Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

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.

All Fundamental Indicators

Be your own money manager

Our tools can tell you how much better you can do entering a position in Investor Education without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Balance Of Power Now

   

Balance Of Power

Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Investor Education using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Check out Investing Opportunities. Note that the Investor Education information on this page should be used as a complementary analysis to other Investor Education statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Tools for Investor Private

When running Investor Education price analysis, check to measure Investor Education market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Investor Education is operating at the current time. Most of Investor Education value examination focuses on studying past and present price action to predict the probability of Investor Education future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Investor Education price. Additionally, you may evaluate how the addition of Investor Education to your portfolios can decrease your overall portfolio volatility.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go