Retained earnings add to shareholder equity (how much each share of a stock is worth in real terms—not market value), which can, in turn, drive stock price up. For this reason, high retained ...

After the net earnings are calculated, this value flows through to the balance sheet and cash flow statement. On the balance sheet, net earnings are included as retained earnings in the equity ...

Phill Holland, founder of MOBI, provides guidelines on how to invest your retained earnings in a way that increases the value of your company and brings benefits to the company.

Some business can build up retained earnings more readily than others ... If a potential business does have a durable competitive advantage, it will be possible to make a more accurate evaluation.