Retained earnings are the amounts left over from profitable operations since the firm's beginning.They are equal to total profits minus all dividends paid to stockholders.

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Retained earnings represent the cumulative amount of net income earned by a company over its life, minus any dividends paid out to shareholders. This figure is an important indicator of a company's ability to reinvest in itself and fund future growth or pay down debt.

Retained Earnings Are the Amounts Left Over from Profitable Operations