Undivided Profit

undivided profit

The undistributed net income that has not yet been included as part of retained earnings.

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Undivided Profit

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