retained earnings

Definition

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. also called earned surplus or accumulated earnings or unappropriated profit.

Use retained earnings in a sentence

You should try to hold on to your retained earnings and put them to good use on your next big project.

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Our retained earnings were a lot higher than I thought and it meant that we would be going far in our company.

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The company credited half the sales its new products to retained earnings in order to further enhance the product for its second version.

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payout restricted surplus