RE:Some Financial InfoA company can have negative retained earnings. This happens when the company's total losses since its founding are larger than its profits. Negative retained earnings are referred to as an "accumulated deficit." Startup companies frequently show an accumulated deficit, because they're spending money faster than they're taking it in as they develop a customer base and do all the other things it takes to build a company. And just as retained earnings are not the same thing as cash, an accumulated deficit does not mean the company does not have any cash.