'''Retained earnings''' refers to [[income]] that is retained by the company for internal use rather than paid out to shareholders in the form of [[dividend | dividends]]. Companies with high growth rates tend to retain more of their earnings so they can sustain their growth.
'''Retained earnings''' refers to [[income]] that is retained by the company for internal use rather than paid out to shareholders in the form of [[dividend | dividends]]. Companies with high growth rates tend to retain more of their earnings so they can sustain their growth.