Quarterly Financial Report: U.S. Corporations: Paper: Net Income Retained in Business

QFRNIRB322USNO • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

997.00

Year-over-Year Change

-58.37%

Date Range

10/1/2000 - 4/1/2025

Summary

This economic indicator tracks the amount of net income that U.S. corporations retain within their businesses after accounting for expenses and distributions. It provides critical insight into corporate financial health, reinvestment strategies, and overall economic performance.

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

The metric represents the portion of corporate earnings that are not paid out as dividends or used for other distributions, instead being reinvested back into the business. Economists view this trend as a key signal of corporate confidence, potential future growth, and strategic investment planning.

Methodology

Data is collected through comprehensive quarterly financial reports submitted by U.S. corporations, aggregated and analyzed by federal economic research institutions.

Historical Context

This indicator is used by policymakers, investors, and economic analysts to assess corporate financial strategies, potential economic expansion, and business investment trends.

Key Facts

  • Represents the portion of corporate earnings retained for internal business purposes
  • Indicates corporate confidence and potential future investment strategies
  • Provides insights into broader economic investment trends

FAQs

Q: What does net income retained in business mean?

A: It represents the portion of corporate earnings that are not distributed as dividends but kept within the company for potential reinvestment, expansion, or financial reserves.

Q: Why is this metric important for investors?

A: It signals corporate financial health, strategic planning, and potential future growth opportunities by showing how companies are managing their earnings.

Q: How often is this data updated?

A: The data is typically updated quarterly, providing a regular snapshot of corporate financial strategies and economic trends.

Q: How do economic conditions impact net income retention?

A: During economic uncertainty, companies might retain more earnings as a financial buffer, while in strong economic periods, they might be more likely to reinvest or distribute dividends.

Q: What are the limitations of this metric?

A: The data provides an aggregate view and may not reflect individual company strategies or sector-specific nuances in financial management.

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Citation

U.S. Federal Reserve, Quarterly Financial Report: U.S. Corporations: Paper: Net Income Retained in Business [QFRNIRB322USNO], retrieved from FRED.

Last Checked: 8/1/2025