Retained Earnings Formula

The amount of profit or net income that is retained by the company for its reinvestment or debt payment rather than the dividends to shareholders is the retained earnings. This formula is used to find how much earnings you have retained so far. It is calculated by adding the Invested amount or beginning retained earnings with net income and subtracting the dividends from it.


RE = BRE + NI - d

RE = Retained Earnings
BRE = Beginning RE
NI = Net Income
d = Dividends

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