Retained Earnings

A REPORT ON COMPARATIVE STUDY OF RETAINED pay OF LUPIN v/s WYETH INTRODUCTION Managing a bon tons operations, marketing and sales activities and expense management are provided a few of the decisions that management has to deal with. After it has make a profit the high society will then fill to decide what to do with those profits. Among the options for using profits are: operations, travel exchange to shareholders, or keeping cash in modestness for future use Retained earnings represent the amount a comp any(prenominal) has remaining after it has paid all its expenses, taxes, and dividends. A company can return all the cash it has left after it has taken care of its obligations, but that would handicap its efforts to thrive operations, make acquisitions, and replace equipment. Some investors like when this figure is returned to them in the form of dividends, but most do understand that something essential be reinvested for the long term. Companies may retain earnings as a strategic move; they may later overstep the reserves on research and development or company acquisitions, to name a few. An example of a company that has a huge hoard of cash is Apple Inc. The companys cash reserve of more than $40 billion is bigger than the entire market capitalization of many Fortune euchre companies.

Why does Apple Inc need so much cash? In the words of Steve Jobs, the companys CEO, Our judgment and our instincts utter us to just leave that powder dry repair where it is right now and its going to come in awfully handy one of these days. Of course, some investors would like to see the company return some of the money to investors, whether by share buyback, which increases the quantify of outstanding shares, or in dividends that give investors cash. However, if the company continues to be properly managed, the strategy should bring greater shareholder mensurate in the long term. Retained earnings are a fuzzy concept; after all you cant look out over them on your foot or use them in any way. And yet... If you want to get a full essay, order it on our website: Orderessay

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