How to Calculate Retained Earnings The Formula + Examples
But while the first scenario is a cause for concern, a negative balance could also result from an aggressive dividend payout, such as a dividend recapitalization in a leveraged buyout (LBO). If the retained earnings balance is gradually accumulating in size, this demonstrates a track record http://booksshare.net/index.php?id1=4&category=lunguistics&author=maluga-en&book=2005&page=39 of profitability (and a more optimistic outlook). Increasing…