Definition

Retained earnings

The cumulative profits a company has kept rather than paid out — every year's net income, less every dividend, since founding. It is the line where the income statement accumulates into the balance sheet; a negative balance (an accumulated deficit) records a history of losses or of distributions beyond earnings.

Formula

Ending retained earnings = Beginning retained earnings + Net income − Dividends

Drivers — what actually moves it

Profitability: net income is the only organic inflow — losses drain the balance directly.
Payout policy: dividends and some buyback structures reduce it — capital returned is capital not retained.

Where to find it in the filing

Balance sheet + statement of stockholders' equity. 10-K Item 8 — one line within stockholders' equity; the equity statement shows the year's roll-forward from net income and dividends.

XBRL concepts Echelon grounds to: RetainedEarningsAccumulatedDeficit

Sector caveats — where this breaks

Heavy buyback programs can push retained earnings and total equity negative at healthy companies — read the roll-forward, not the sign alone.

Return on equity Dividend payout ratio Balance-sheet identity

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.