undistributed profits

(redirected from Earnings Retained)

Undistributed Profits

The amount of a publicly-traded company's post-tax earnings that are not paid in dividends. Most earnings retained are re-invested into the company's operations. Year-on-year tracking of the ratio of undistributed profits to dividends is important to fundamental analysis to investigate whether a company is increasing or decreasing its rate of re-investment. Undistributed profits form part of a company's equity, and are owned by shareholders. They are also called retained earnings, accumulated profits, undivided profits, and earned surplus.

undistributed profits

undistributed profits

see RETAINED PROFIT.

undistributed profits

see RETAINED PROFITS.
References in periodicals archive ?
Non-compliance with a buffer means that the bank may be restricted in the distributions it may make (whether to shareholders or to employees by way of bonuses) until earnings retained by the bank (or fresh capital) have restored the buffer.
The company also boasts an impressive financial record - maintaining "excellent" levels of profitability over the years with the bulk of earnings retained in the business to support its continued expansion.
The earnings retained in a C corporation will eventually bring a second level of tax to the shareholders, in the form of taxable gain on a sale or liquidation of stock.
The analysis above, however, suggests that the share of earnings retained declined substantially in the late 1990s.
It shows the breakdown of profit distributed to owners or stockholders as well as the earnings retained in the business.
For the Federal Reserve, some of that capital has been contributed by member commercial banks and some from earnings retained in the surplus account.
The improvement in cash was mainly related to a 78% earnings retained 2008 (approximately USD78 million), and the deferral of a portion of the expected capital investment for 2009.
Even when stock is purchased, the increase in basis due to earnings retained by the S corporation may outweigh any Sec.
In addition to the impact of the cumulative net losses associated with derivatives, hedged items, and financial instruments carried at fair value and the impact of the increase in the amount of earnings retained to build the Bank's retained earnings, the decrease in the dividend rate for the third quarter of 2008 compared to the same period in 2007 reflects a lower yield on invested capital, partially offset by a higher net interest spread on the Bank's mortgage portfolio and higher net interest spreads on investments and advances during the third quarter of 2008 compared to the same period in 2007.
The decreases in the annual and quarterly dividend rates primarily reflect the changes in the Bank's Retained Earnings and Dividend Policy that became effective on January 1, 2007, increasing the target amount of retained earnings to $296 million and increasing the percentage of earnings retained to 10% of earnings, excluding the effects of SFAS 133, until the target is reached.
Earnings retained in 2005 are expected to increase the ratio to 250%, the level at which A.
This improvement was the result of earnings retained from profits, the net proceeds from the placement of new shares and the conversion of EUR 2.