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Undistributed Profits
(redirected from Undivided Profits)

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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


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As a result of the redemption, the Company expects to record a reduction in undivided profits of approximately $551,000 in the second quarter of 2009 associated with accelerated discount accretion related to the difference between the amount at which the Preferred Stock sale was initially recorded and its redemption price.
For example, a Delaware bank may not count its bank capital and surplus as part of the mandated capital and reserves for its insurance operations, nor may it allocate more than 25 percent of its total capital, surplus and undivided profits in the aggregate to all of its insurance divisions and subsidiaries.
expects to record a reduction in undivided profits of approximately $463,000 in the fourth quarter of 2009 associated with accelerated discount accretion related to the difference between the amount at which the Preferred Stock sale was initially recorded and its redemption price.
 
 
 
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