Retained earnings are the cumulative profits a company has reinvested in the business rather than distributing to shareholders as dividends. They reflect the company's ability to generate profit and reinvest in growth, impacting its financial health and future potential.

Retained Earnings

Retained earnings

cumulative profits

distributing to shareholders

Dividends are payments made by a corporation to its shareholders, usually in the form of cash or additional stock, as a distribution of profits. They are a key indicator of a company's financial health and commitment to returning value to its investors.

dividends

company's ability to generate profit

reinvest in growth

Financial health refers to the state of one's personal financial situation, encompassing the ability to manage expenses, save for future goals, and withstand financial shocks. It is a comprehensive measure that includes income, expenditure, savings, investments, and debt management, indicating overall financial stability and security.

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