Dividends are after-tax cash payments to shareholders. The retained-earnings account in the stockholders' equity section of the balance sheet holds the accumulated profits, minus dividend payments.

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Cash flow is a measurement of the money moving in and out of a business, and it helps to determine financial health. Many, or all, of the products featured on this page are from our advertising ...

Learn why cash flow statements are essential for business survival, how they track liquidity and solvency, and key strategies for financial management.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

What goes into generating a single dollar of revenue, in your business? Can you accurately define your true operating costs? So many times I’ve heard owners say: “I take my material cost and multiply ...

Cash flow is the changes in the amount of cash a business has on hand. Corporations have to prepare an annual cash flow statement that describes these changes, whether they are due to operating ...

Learn how to tell if your business could be facing a cash crunch Nick Guy is a staff senior editor for Buy Side. He's been reviewing personal technology, accessories and myriad other products for more ...

The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...

Three Critical Steps for Sustainable GrowthIn the world of entrepreneurship, we often hear stories of companies reporting huge paper profits, only to fail and declare bankruptcy in the end. This puzzl ...

This means your business is bringing in more cash than it’s spending. That’s a green flag. It gives you the flexibility to pay your bills on time, invest in growth opportunities, and build a financial ...