The statement of retained earnings (retained earnings statement) is a financial statement that outlines the changes in retained earnings for a company over a specified period. This statement reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements. Analysts use it to understand how corporate profits are utilized.

Retained earnings are profits a company holds in reserve in order to invest in future projects rather than distribute as dividends to shareholders.

It is prepared in accordance with generally accepted accounting principles (GAAP).