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 ...

Retained earnings make up part of the stockholder's equity on the balance sheet. Revenue is the income earned from selling goods or services produced. Retained earnings are the amount of net ...

If retained earnings has gone up, then the result will be less than the year's net earnings. If retained earnings have fallen, then the result will be greater than the net earnings for the year.

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.

Read here for an analysis of Charles River's (CRL) strong financial performance with high ROE and decreasing liabilities, indicating future capital deployment.