retained profits

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.

retained profits


undistributed profits

any after-tax PROFITS that are reinvested (ploughed back) in the firm rather than being paid out to the owners of the company in DIVIDENDS. Such retained earnings form a valuable source of capital to be invested in additional FIXED ASSETS and CURRENT ASSETS. They serve to swell the value of the company to the shareholders and increase SHAREHOLDERS’ CAPITAL EMPLOYED by adding to revenue RESERVES. Retained profits are a form of business savings. See SAVINGS RATIO
References in periodicals archive ?
The AGM approved the transfer of BD304,641, the equivalent to 10pc of net profits, to the statutory reserve, and the allocation of BD2,741,764 to retained profits.
He said that Bahraini banks in particular and Gulf and Arab banks in general have better financial solvency than European and western banks as Arab and Gulf banks determine financial solvency on the basis of shareholders rights and retained profits unlike western banks which determine financial solvency on the basis of other elements that have been superseded by Basil III.
The moves comes following the Chinese authorities' requirement that banks boost their Tier-one capital-adequacy ratio, a measure that compares equity capital and retained profits with risk-weighted assets to be at least 11.
The society's balance sheet is 100% funded by retail savings and retained profits meaning it has no reliance on the wholesale money markets to fund either asset growth or mortgage lending.
The retained profits will add to the PS550m raised to boost its balance sheet last year after creating a new type of special share.
The retained profits will add to the PS550million raised to boost its balance sheet last year after creating a new type of special share.
Likewise, retained profits of Samba Financial Group (SFG) stood at SR16.
7 billion which, along with retained profits, was sufficient to support the growth in loans, investments and the repayment of the Dh684 million in debt to the Ministry of Finance.
19 times) as a result of higher retained profits during the review period.
Total shareholder equity, including paid-up share capital, reserves and retained profits, reached QR 5.
The retained profits strengthened the balance sheet and shareholders' funds stood at pounds 1.
Dixon Norval, head of strategic marketing at FNB Namibia Holdings said: "FNB's achievement was based on Tier 1 capital, which comprises shareholder equity, retained profits and equity accounts of subsidiaries.