If a company loses money rather than making money over a given period (i.e., its net income is negative), this detracts from any retained earnings the company had. To calculate retained earnings ...

Calculate dividends by subtracting year-end retained earnings from start-year retained earnings, then net income. Dividend payout ratio (DPR) is found by dividing total dividends by net income to ...

Invest in the Business to Keep Pace Some businesses, notably manufacturing, find it necessary to spend their retained earnings just to keep up with their competitors who are installing more efficient ...

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.