retained profits
nounUK /rɪˈteɪnd ˈprɒfɪts/
US /rɪˈteɪnd ˈprɑːfɪts/
Money a company keeps to use later instead of giving it to owners.
The bakery used its retained profits to buy a bigger oven.
OTHER MEANINGS
2. Profits kept in the business after paying dividends to shareholders.
The board decided to increase retained profits rather than pay a larger dividend.
3. Money set aside inside a company to fund future growth or pay off debt.
Retained profits helped the firm expand without taking a loan.
4. The part of net income not paid out to owners, shown on the balance sheet.
Retained profits appear under shareholders' equity on the balance sheet.