While paying dividends to shareholders is one way to use profits, aiming for higher retained earnings can be a more effective long-term strategy for creating shareholder value. In addition to ...

Net income is equal to revenues minus expenses. Corporate net income minus dividends declared is equal to that corporation's change to its retained earnings due to the company's running of its ...

Retained earnings are a saved portion of the company's profit that is not paid out to shareholders. Keeping a portion of profit back increases the amount of capital you have to expand your business or ...

Retained earnings are the cumulative profits that a company has kept to reinvest in its business. Some earnings are distributed to shareholders as dividends. The remainder is considered retained ...

Revenue and retained earnings provide insights into a company’s financial performance. Revenue is a critical component of the income statement. It reveals the "top line" of the company or the sales a ...

Matheu D. Nunn, left, and Gary R. Botwinick, right, of Einhorn, Barbarito, Frost, Botwinick, Nunn & Musmanno. Courtesy photos “Phantom income” represents a challenge for taxpayers and businesses in ...