How to understand Retained earnings & comprehensive income？

Retained earnings refer to the portion of a company's profits that are not distributed as dividends but are instead kept by the company for future use. This amount is calculated by subtracting dividends paid from net income.

Comprehensive income, on the other hand, includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners. It includes both net income and other gains and losses that are not included in net income, such as unrealized gains and losses on available-for-sale securities.

In simple terms, retained earnings are the profits that a company has kept for itself, while comprehensive income includes all changes in equity, including those that are not directly related to the company's operations.