Retained earnings (accumulated deficit)
Cumulative earnings retained in the business or accumulated deficit.
Worked example · a round-number company
Retained earnings (accumulated deficit)$1.0B÷Total assets$10.0B=Share of assets10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↑Higher is better. Shows accumulated accounting profits or losses after distributions and adjustments.
Keep in mind
- Retained earnings are not a cash balance.