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.
Even when stock is purchased, the increase in basis due to earnings retained by the S corporation may outweigh any Sec.