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Definition of Retained earnings
Accounting earnings that are retained by the firm for reinvestment in its operations;
Profits a company plowed back into the business over the years. Last January’s retained earnings, plus the net income or profit that a company made this year (which is calculated on the income statement), minus dividends paid out, equals the retained earnings balance on the balance sheet date.
The residual earnings of the company.
A company’s accumulated earnings since its inception, less any distributions to shareholders.
earnings not paid out as dividends.
Net profits kept to accumulate in a business after dividends are paid.
An adjunct to the balance sheet, providing more detailed information about the beginning balance, changes, and ending balance in
One of the basic financial statements; it takes the beginning balance of retained earnings and adds net income, then subtracts dividends. The Statement of retained earnings is prepared for a specified period of time.
A very broad term rooted in economic theory and referring to
The entries that transfer the balances in the revenue, expense, and dividend accounts to retained earnings and zero out the revenue, expense, and dividend accounts for the next period.
Anegative balance in the retained earnings account that is caused by cumulative
Amounts contributed to the company by the owners (contributed capital) plus the residual earnings of the business (retained earnings).
Refers to one of the two basic sources of capital for a business, the
The net worth of a business, consisting of capital stock, capital (or paid-in) surplus (or retained earnings), and, occasionally, certain net worth reserves. Common equity is that part of the total net worth belonging to the common shareholders. Total equity includes preferred shareholders. The terms common stock, net worth, and common equity are frequently used interchangeably.
Finance generated within a firm by retained earnings and depreciation.
Common stockholders' equity which consists of common stock, surplus, and retained earnings.
Refers to the capital invested in a business by its shareowners
The total of all capital contributions and retained earnings on a business’s
Funds, other than paid-up capital and retained earnings, employed in a business and which will remain in a business as permanent capital.
The total amount of contributed capital and retained earnings; synonymous with stockholders' equity.
A tax system that taxes retained earnings at a higher rate than earnings that are
Balance sheet item that includes the book value of ownership in the corporation. It
The total amount of contributed capital and retained earnings; synonymous with shareholders’ equity.
The accounts found on the Income Statement and the Statement of retained earnings; these accounts are reduced to zero at the end of every accounting period.
Abusive Earnings Management
The use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
Abusive Earnings Management
A characterization used by the Securities and Exchange
earnings of a firm as reported on its income statement.
Net income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss.
basic earnings per share (EPS)
This important ratio equals the net
Basic Earnings Power Ratio
Percentage of earnings relative to total assets; indication of how
A measure of earnings that includes only the results of the primary operating
Cost Plus Estimated Earnings in Excess of Billings
Revenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts
diluted earnings per share (EPS)
This measure of earnings per share
Net income for the company during the period.
In general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax.
earnings before interest and income tax (EBIT)
A measure of profit that
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
Earnings before interest and taxes (EBIT)
The operating profit before deducting interest and tax.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
The operating profit before deducting interest, tax, depreciation and amortization.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working
The active manipulation of earnings toward a predetermined target.
Earnings per Share
A measure of the earnings generated by a company on a per
Earnings per share (EPS)
EPS, as it is called, is a company's profit divided by its number of outstanding
earnings per share (EPS)
See basic earnings per share and diluted earnings per share.
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
Earnings retention ratio
Positive or negative differences from the consensus forecast of earnings by institutions
The ratio of earnings per share after allowing for tax and interest payments on fixed interest
EBBS - Earnings before the bad stuff
An acronym attributed to a member of the Securities and
EBDDT - Earnings before depreciation and deferred taxes
This measure is used principally by
The real flow of cash that a firm could pay out forever in the absence of any change in
Fully diluted earnings per shares
earnings per share expressed as if all outstanding convertible securities
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
net income (also called the bottom line, earnings, net earnings, and net
A term frequently used to describe earnings after the removal of the
Operational Earnings Management
Management actions taken in the effort to create stable
earnings before the effects of any earnings-management activities.
price-earnings (P/E) multiple (ratio)
Ratio of stock price to earnings per share.
Price / Earnings (P/E) Ratio
The ratio of price to earnings. Faster growing or less-risky firms typically have higher P/E ratios than either slower-growing or more risky firms.
Price/earnings ratio (PE ratio)
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current
price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)
This key ratio equals the current market price
Price to Earnings Ratio (P/E, PE Ratio)
A measure of how much investors are willing to pay for each dollar
Reported net income with selected nonrecurring items of revenue or gain
Real Actions (Earnings) Management
Involves operational steps and not simply acceleration
The amount of profit after deducting interest, taxation and dividends that is retained by the business.
Roth IRA. An IRA account whose earnings are not taxable at all under certain
Reported earnings that have had the after-tax effects of all material
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Fraction of earnings retained by the firm.
The percentage of present earnings held back or retained by a corporation, or one minus the
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