How To Calculate Retained Earnings? (With Examples)

Elenajames02214 Jan, 2022Finance

When your company makes a profit, you should be pleased with the rise in retained earnings. But if there's ever been any withdrawal from these profits as dividend payout and payouts to shareholders then we can expect that number will plunge again - just like it did last time! Retained earnings is the amount of net income left over for the business after it has paid out dividends to its shareholders.