Select Page

Retained Earnings

Financial Statements

Sponsored Content

steemit

Visit on Steemit!

Support us on Steemit!

bitcoinlgoo

Visit on D.Tube!

Support us on D.Tube!

Curriculum Content

After you’ve deducted all expenses from sales you reach the retained earnings section of the income statement. This section looks at the amount of money payable to shareholders and kept within the bank. This is especially important on a per share value since they strengthen your returns on a per share basis. You want to see upwards trends in all subsections of this section.

Dividends

Dividends list the total value of payments given to those who own preferred, and sometimes common, shares or stock. This is an annual payment that must be made every year to investors who hold preferred shares. If dividends are not paid each year it accrues until it is paid in full. The higher the amount of externally owned preferred shares, the higher this number will become year over year.

Retained Earnings or Additions to Paid-In Capital

Retained earnings are the amount of profit kept within the company. The full value of this section is added to the retained earnings section of the balance sheet under shareholder’s equity. Retained Earnings is the full amount the company can use to invest in its future operations or investments without being forced to absorb the costs of interest or diluting investor’s shares. This only occurs after every other expense and option have been paid. The higher this number is the better for the company. It increases the strength of internal financing in the future. You should seek out businesses with higher Retained Earnings than their competitors, indicating a strong advantage. It also indicates that the firm uses the money that has been invested in building a self-financing company over time. If a business can get this number closer to 30% it’s a great sign, as long as the firm isn’t taking unnecessary risks to get there.

Per-Share Earnings

Do not review only Retained Earnings or Additions to Paid-In capital. In addition to overall earnings, you should look at the Earnings on a Per Share basis. Higher earnings per share increase the value of each actual share. To determine per share earnings, a company’s dividends to preferred stock is subtracted from net income, and the remainder is divided by the average shares outstanding. This delivers the actual earnings per share. There is an important notice for you here. Per-share earnings need to show a constant and consistent upward trend over time. Like net earnings, it is better to have a year over year increase than finding rising and falling earnings per share. A constantly rising earnings per share indicates a stronger company. It is important to note this figure can be distorted rather easily by share buyback programs. The fewer shares that are outstanding, the fewer shares net income is divided by. The result is higher Per-Share earnings simply by manipulation of shares on the market. If per-share earnings are increasing, check net income to make sure it is also increasing.

Did we help you? Vote with a Crypto-Donation!
steemit

Visit on Steemit!

Support us on Steemit!

bitcoinlgoo

Donate Bitcoin

141FSmuHkMSZVsQQtE9GHSPyj6gAonqqWR

bitcoinlgoo

Donate Dash

Xr4fdtP78Mh3gnVwAUjjuZRCq3kubaHZ5o

bitcoinlgoo

Donate Litecoin

LcrxGsshB2j9SddnZNdLfYMsDqAtw3Dr9v

bitcoinlgoo

Donate Iota

LXIVNBVHRYBOHRWNGMBNHOYMT9GBEFTPQMKDUZUYYHGMPXOOEYETMUQZXWXCGWBMTFERLW9LMCKNUDCKAMDOQCNDNZ

bitcoinlgoo

Visit on D.Tube!

Support us on D.Tube!

bitcoinlgoo

Donate Bitcoin Cash

14NCVeGCZfHf7tiy9N2Yz1mrBNi9m2mQ4S

bitcoinlgoo

Donate Ethereum

0xAF7d66B09F34833Ccec1Ed9e4D356D40c09698e5

bitcoinlgoo

Donate Ripple

raiZ2rCXLeBTUh2A4voKALZpMxQ88KxZxm

bitcoinlgoo

Donate Monero

42byh9AjzB3XXRptSeSfzAGC588HRZgVXAGMay6yYKjjAHinUxdQkxw3Ay1XcziXV86XY57aRqG5kGnJ8LFWmSjmAnUEnYh

International Economic Analysis:

  • Major Currency Economic Summaries
  • Performance of Major Imports and Exports
  • Mandates of Central Banks versus Expectations
  • Performance Indexes of Major Economies
  • Economically Correlated Currency Projections
  • Large Funds Currency Sentiment Readings
  • List of Technical Indicators to Look For
  • Occasional: Foregin Exchange Technicals Markups

American Markets Analysis:

  • Summaries of American Economic Structure
  • Performance of Major
  • Imports/Exports
  • Federal Reserve Mandate versus Expectations
  • Performance Indexes of U.S Economy
  • Economically Correlated U.S Dollar Projections
  • Large Trading Fund Index Sentiment Readings
  • Market Wide Earnings Versus Valuations
  • Fundamental Ranking of U.S Business Sectors
  • Best and Worst Future Consensus Estimates
  • Occasional: Firm Fundamental Strength Report
  • List of Technicals to Look for While Trading

WealthCE FX + Equity Analysis

Major 8 Economic Summaries
Economic Performance Index
Currency Market Sentiment
Equity Index Market Sentiment
Sector Strength Tracking
Equity EPS/PEG Estimates
Fundamental Firm Analysis
Trend Following Trading Plans

Robinhood is a SEC, FINRA, & SIPC member brokerage that lets you to buy and sell U.S. stocks/ETFS with ZERO commission. Sign up and get a free stock!

coinbase

Coinbase is a digital brokerage specializing in currencies. They allow you to trade US Dollars and Euros for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

coinbase

MyFxChoice is a regulated brokerage offering 200:1 Leverage on Foreign Exchange, Gold, and Silver. They offer 33:1 on Crude oils and up to 50:1 on equity indices like the FTSE100, DAX30, S&P500, and Nikkei.

Forex Tester 3 is a technical analysis back testing and simulated trading platform that serves as a testing platform for trading strategies.

Ledger Nano S - The secure hardware wallet

Sponsored Content