# Retained Earnings

*Accounting & Reporting — Finicade finance glossary*

Retained earnings are the cumulative profits a company has kept rather than paid out as dividends. It's a historical record, not a cash pile — the money was long since spent on assets, inventory or acquisitions. A large retained earnings balance with no cash is entirely normal, and a negative balance (accumulated deficit) simply means lifetime losses exceed lifetime profits.

**Also known as:** accumulated profits, retained profit, accumulated deficit

**Related terms:** [Shareholders' Equity](https://finicade.com/glossary/shareholders-equity), [Dividend](https://finicade.com/glossary/dividend), [Net Income](https://finicade.com/glossary/net-income), [Balance Sheet](https://finicade.com/glossary/balance-sheet), [Share Buyback](https://finicade.com/glossary/share-buyback)

Source: https://finicade.com/glossary/retained-earnings