When your company makes a profit, you can issue a dividend to shareholders or keep the money. The profits you keep are called retained earnings. You can use retained earnings to fund working capital, ...

One of the most useful metrics in assessing a company's profitability is earnings per share, and it can be calculated from information found on that company's balance sheet and income statement, two ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

The link between a balance sheet and an income statement is obvious, but it's also tricky. The more income your business earns, the more value should show up on its balance sheet. But the calculations ...

Take extra care when evaluating a REIT's income and debt -- the standard rules don't all apply. The best way to find out how a company makes its money, how much it makes, and how much debt it has is ...

Stockholders' equity equals assets minus liabilities, framing investor stake after creditors. Paid-in capital includes monies from stock sales, often split into par value and excess amounts. Retained ...

Many investors focus on how much a company pays in dividends. Most companies report their dividends on a cash-flow statement or in a separate accounting summary in their regular disclosures to ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...