Finance Can I use the company's retained earnings?


Generally, no. Retained earnings represent one of the "owners" of the assets. It is the accumulation of profits that have not been distributed as dividends over the life of a company. These generally can't be spent again because they have already been spent on plant and equipment, automation, new product lines, acquisitions, etc. In the case where we retire stock, a portion of our retained earnings may be used. This portion depends on what percent of our total equity is comprised by our retained earnings.