Retained earnings are an important component of a business’s financial standing, as they represent the net profit that has been accumulated over time. Components Of Retained Earnings occur on the balance sheet and are comprised of multiple elements. These can include undistributed profits from past years, dividends paid to shareholders, or other distributions made as part of a repurchase agreement. In other words, all of the income earned but not distributed to owners is referred to as Components Of Retained Earnings. Knowing what contributions have been made to this important financial metric can help businesses make informed decisions today and in the future. It’s important to note that Components Of Retained Earnings differs from cash reserves, which can be quickly accessed in times of need.