Quarterly Financial Report: U.S. Corporations: Paper: Retained Earnings

QFR322322USNO • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

43,537.00

Year-over-Year Change

-4.25%

Date Range

10/1/2000 - 4/1/2025

Summary

This economic indicator tracks the quarterly retained earnings of U.S. corporations, representing the portion of net income not distributed as dividends. It provides critical insight into corporate financial health and reinvestment strategies.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Retained earnings reflect a company's cumulative net profits that are reinvested in business operations rather than distributed to shareholders. Economists and investors use this metric to assess corporate financial strategy, growth potential, and long-term economic resilience.

Methodology

Data is collected through comprehensive quarterly financial reports submitted by U.S. corporations to regulatory agencies, aggregated and analyzed by the Federal Reserve.

Historical Context

This trend is crucial for understanding corporate investment patterns, economic growth potential, and overall business confidence in the U.S. market.

Key Facts

  • Represents accumulated profits not distributed as dividends
  • Indicates corporate reinvestment and financial strategy
  • Provides insight into broader economic health and business confidence

FAQs

Q: What do retained earnings indicate about a company's financial health?

A: Retained earnings suggest a company's ability to generate profit and reinvest in growth without external financing. Higher retained earnings often signal strong financial performance and strategic investment.

Q: How do retained earnings impact economic growth?

A: When corporations retain earnings, they can invest in research, expansion, and infrastructure, which can stimulate economic growth and job creation.

Q: How often is this data updated?

A: The Quarterly Financial Report is typically updated on a quarterly basis, providing current insights into corporate financial trends.

Q: Why do investors care about retained earnings?

A: Investors use retained earnings to assess a company's financial strategy, growth potential, and ability to generate long-term value without relying on external capital.

Q: What are the limitations of this economic indicator?

A: While valuable, retained earnings represent only one aspect of corporate financial health and should be analyzed alongside other financial metrics for comprehensive insights.

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Citation

U.S. Federal Reserve, Quarterly Financial Report: U.S. Corporations: Paper: Retained Earnings [QFR322322USNO], retrieved from FRED.

Last Checked: 8/1/2025