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Financial statements
Profits the company has kept over the years instead of paying out.
Together with equity capital this is the owners' cushion. It is what absorbs a loss year without new money from shareholders.
Rising reserves mean the business has been earning and retaining. A sudden drop is usually a write-off, a dividend, or a buyback.
Profits the company has kept over the years instead of paying out.
Together with equity capital this is the owners' cushion. It is what absorbs a loss year without new money from shareholders.
No. Reserves and surplus describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.