retained earnings

简明释义

留存收益

英英释义

例句

1.The increase in retained earnings indicates that the company is generating enough profit to support its expansion plans.

留存收益的增加表明公司产生了足够的利润来支持其扩张计划。

2.A high level of retained earnings can be a sign of a financially healthy company.

高水平的留存收益可能是公司财务健康的标志。

3.After reviewing the financial statements, the board was pleased to see an increase in retained earnings over the past year.

在审查财务报表后，董事会很高兴看到过去一年中留存收益的增加。

4.The company decided to reinvest its retained earnings into new technology to improve production efficiency.

公司决定将其留存收益再投资于新技术，以提高生产效率。

5.Investors often look at a firm's retained earnings to assess its ability to grow and reinvest profits.

投资者通常查看公司的留存收益以评估其增长和再投资利润的能力。

作文

Retained earnings are an essential concept in accounting and finance that signifies the portion of a company's profit that is not distributed as dividends to shareholders but is instead reinvested in the business. This financial metric is crucial for understanding a company's long-term growth potential and its ability to fund new projects without relying on external financing. In essence, retained earnings (留存收益) represent the cumulative amount of net income that has been retained in the company since its inception, minus any dividends paid out to shareholders. One of the primary reasons companies choose to retain earnings is to reinvest in their operations. For instance, a company may decide to use its retained earnings (留存收益) to purchase new equipment, expand its facilities, or develop new products. By doing so, the company can fuel its growth and increase its market share without incurring debt or diluting ownership through issuing new shares. Retaining earnings can also provide a buffer during economic downturns, allowing the company to maintain operations without needing immediate external funding.Moreover, retained earnings (留存收益) play a significant role in assessing a company's financial health. Investors and analysts often scrutinize the retained earnings of a company to gauge its profitability and reinvestment strategy. A consistently growing retained earnings balance can indicate that a company is effectively managing its profits and is committed to long-term growth. Conversely, declining retained earnings might raise red flags about a company's operational efficiency or signal that it is struggling to generate profits.It's important to note that while retaining earnings can be beneficial, it can also lead to discontent among shareholders if they feel that the company is not adequately rewarding them with dividends. Thus, companies must strike a balance between retaining earnings for growth and providing returns to shareholders. This balancing act is often reflected in the company's dividend policy, which outlines how much of the profit will be distributed versus how much will be retained.In conclusion, retained earnings (留存收益) are a vital component of a company's financial strategy. They provide the necessary funds for reinvestment in the business, contribute to financial stability, and serve as an indicator of a company's profitability and growth potential. Understanding how retained earnings work and their implications for a company's future can help investors make informed decisions and better assess the overall health of a business.