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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The group's share of equity increased by 4 per cent from the year-end position in 2017, as a result of retained profits.
According to the new protocol, TE will receive EGP 5.5bn in two tranches: EGP 4.8bn in March and EGP 0.7bn in June 2020, which represent 82% of the retained profits.
The capital top-up was funded from the statuary reserves and the retained profits, according to the bank's financial statements in June 30, 2016.
The society's balance sheet is 100% funded by retail and business savings and retained profits, meaning it has no reliance on the wholesale money markets to fund either asset growth or mortgage lending.
Capitalization indicators have strengthened over time with increase in equity base on account of retained profits; resultantly Tier-1 and overall CAR have increased.
QAR 3.5 for each share, and the bonus share issue, together with the transfer of the necessary amounts from the retained profits to the legal reserve for this reserve to become 100 per cent of the capital (excluding issue fees).
The work, funded through retained profits and bank loans, is part of a long-term partnership with interior design expert Melony Spencer of Spencer Swinden.
assets and total equity in the ratio to retained profits for the period under review.
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.
The virtuous way is to rebuild capital through retained profits, but this takes a time.
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.