Glossary
Retained earnings
Definition
Retained earnings are the profits the company has made over the years and has not paid out as dividends. They are part of equity, and each year's profit or loss moves into them at the closing. A dividend reduces them.
Example. A company with €10,000 of retained earnings that makes a €4,000 profit this year has €14,000 after the closing, if no dividend is paid.
Why it matters for your company
Retained earnings are the profit that is still in the company. Dividends are paid from it, so this figure shows how much profit is available to pay out.
Where you see it in Sapita
On the balance sheet, in equity, and after the year-end closing.