Statement of Retained Earnings: What It Shows and How to Read It
Warren Team
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Key terms
- Earnings Per Share (EPS)A company's net profit divided by the number of outstanding shares. Used to measure profitability and calculate the P/E ratio. Higher EPS generally indicates better profitability.
- Price-to-Earnings Ratio (P/E Ratio)Stock price divided by earnings per share. Measures how much investors pay for each dollar of earnings. High P/E suggests growth expectations; low P/E may indicate value.
- Statement BalanceThe total amount owed on a credit card at the end of the billing cycle. Paying this amount in full by the due date avoids interest charges and maximizes the grace period.
- Statement Closing DateThe last day of the billing cycle when your statement is generated. Charges after this date appear on the next statement. Payment is typically due 21-25 days after closing.
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