Quarterly Financial Report: U.S. Corporations: All Other Information: Net Income Retained in Business

QFRNIRB519USNO • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

26,479.00

Year-over-Year Change

0.89%

Date Range

10/1/2009 - 1/1/2025

Summary

This economic indicator tracks the portion of net income that U.S. corporations retain within their businesses rather than distributing as dividends. It provides critical insight into corporate financial strategies and reinvestment patterns.

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

Net income retained in business represents the funds corporations choose to keep for future investments, capital expenditures, or financial reserves. Economists analyze this metric to understand corporate growth strategies, investment confidence, and potential economic expansion signals.

Methodology

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

Historical Context

This trend is used by policymakers, investors, and economic analysts to assess corporate financial health, investment trends, and potential economic growth indicators.

Key Facts

  • Represents corporate financial decision-making about reinvestment
  • Indicates potential future business expansion and capital expenditure
  • Reflects overall corporate confidence in economic conditions

FAQs

Q: What does 'net income retained in business' mean?

A: It represents the portion of a corporation's profits that are kept within the business instead of being distributed to shareholders as dividends.

Q: Why do corporations retain earnings?

A: Corporations retain earnings to fund future investments, research and development, debt reduction, or to build financial reserves for potential economic uncertainties.

Q: How is this data series calculated?

A: The series aggregates net income retained across all U.S. corporations, calculated by subtracting distributed dividends from total net income.

Q: How do investors use this information?

A: Investors analyze retained earnings to assess a company's growth strategy, financial health, and potential for future expansion.

Q: How frequently is this data updated?

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

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Citation

U.S. Federal Reserve, Quarterly Financial Report: U.S. Corporations: All Other Information: Net Income Retained in Business [QFRNIRB519USNO], retrieved from FRED.

Last Checked: 8/1/2025