undistributed 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

undistributed profits

see RETAINED PROFIT.

undistributed profits

see RETAINED PROFITS.
References in periodicals archive ?
Growth patterns of various indicators such as number of primary co-operative agriculture and rural development banks Membership, Share Capital, Loans outstanding, Undistributed profits, Recovery and nonperforming Assets (NPAs) etc in terms of their absolute value over a period of time under study are taken into consideration.
124) A tax on undistributed profits would discourage shareholders (who tended to be rich) from saving too much within corporate coffers.
Eighty years ago, credit men were talking about the current recession and potential inflation, and NACM was working to repeal the undistributed profits tax.
38) The Court agreed, albeit in dictum, that the phrase "whether divided or otherwise" meant that a corporation's undistributed profits were generally taxed as income to its shareholders as if they had been received by the shareholder as a dividend or liquidating distribution.
1 per cent higher in 1995, which is largely due to the fact that it now includes undistributed profits of foreign subsidiaries of Dutch companies.
was profitable, the adjusted basis due to past undistributed profits could be used to offset suspended losses generated by L.
Income on equity covers dividends and reinvested earnings for incorporated enterprises and distributed and undistributed profits for branches.
He gained enactment of a wealth tax, revived the estate and gift taxes, and imposed a special tax on undistributed profits to stop the use of corporations as personal tax shelters.
Calomiris and Hubbard (1995) find similar results when studying dividend and capital-spending behavior by firms around the Undistributed Profits Tax of 1936.
For example, undistributed profits of German corporations are taxed at a 45%, while distributed income is taxed at 30%.
What this perception expresses is the fact that while part of dividends is consumed, all undistributed profits are added to aggregate savings.
In addition, taxes paid on undistributed profits were lowered by 50%.