accounting
retained earnings
The portion of a company's profits that is kept and reinvested in the business rather than paid out as dividends.
Example
"The company used its retained earnings to fund new product development."
💡 Memory Tip
RETAINED = kept. The company RETAINS (keeps) these earnings instead of paying them out.
Etymology
Retained (kept back) + earnings (profits) — profits kept rather than distributed.
Common Misspellings
retained earingsretaned earningsretaained earningsretained earningss