Retained earnings add to shareholder equity (how much each share of a stock is worth in real terms—not market value), which can, in turn, drive stock price up. For this reason, high retained ...

After the net earnings are calculated, this value flows through to the balance sheet and cash flow statement. On the balance sheet, net earnings are included as retained earnings in the equity ...

If retained earnings has gone up, then the result will be less than the year's net earnings. If retained earnings have fallen, then the result will be greater than the net earnings for the year.