undivided profit

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.

undivided profit

The undistributed net income that has not yet been included as part of retained earnings.
References in periodicals archive ?
Any bonds, notes, or other evidences of indebtedness listed in Section (1) through (3) may be purchased pursuant to a repurchase agreement with a Bank, within or without the City ,having a combined capital, surplus and undivided profit of not less than $25,000,000 provided the obligation of the Bank to repurchase is within the time limitations established for investments as set forth herein.
The authors of [8] cite the ratio of undivided profit to owned capital as an indicator of life cycle phase.
According to the pecking order theory, this is because management prioritized undivided profit over issuing shares or bonds during financing because of high flotation costs.
In a financial report for the fiscal year ended in March 2000, Morimoto and others falsely reported that the company generated 580 million yen in undivided profit despite the company chalked up about 5.7 billion yen in unabsorbed loss.
The term capital is synonymous to unimpaired capital and surplus, combined capital accounts and net worth and refers to the total of the unimpaired paid-in capital, surplus, and undivided profits. Under the new circular, Fonacier said deposits for stock subscription classified as equity would now be part of banks' net worth.
Firstly, increasing R&D cost pushed up operation fee over 20% in Q2; secondly, exchange loss from Czech koruna (CZK) and China's Renminbi (RMB) reached NT$450 million (US$15 million) to total NT$575 million (US$19.17 million); finally mounting income tax from undivided profits weakened growth of economy of scale.
In that situation, the language of the Bill states that "the creditor corporation is allowed to deduct from the total of its capital, surplus, and undivided profits the amount of any debt owed to it by a parent, subsidiary, or affiliated corporation to the extent that the debt has been included in the tax base of the parent, subsidiary, or affiliated debtor corporation reporting for taxation under the provision to this section." No such relief provision exists, however, to remedy the potential for double taxation created by applying the related party debt rule to noncorporate business entities.
Under current law, corporations calculate their apportioned tax base (i.e., prior to applying the tax rate) by using the highest of three amounts: (1) total capital stock, surplus and undivided profits apportioned to North Carolina; (2) 55% of the appraised value of all real and tangible personal property in the State; and (3) the total actual investment in tangible property in the State.
Aki's recent Senate Bill 1756 would order newspapers to submit a form revealing their assets and liabilities, all sustained losses, expenses and taxes paid (including all compensation paid to each officer, editor and publisher), gross earnings, undivided profits and dividends paid.
For example, a Delaware bank may not count its bank capital and surplus as part of the mandated capital and reserves for its insurance operations, nor may it allocate more than 25 percent of its total capital, surplus and undivided profits in the aggregate to all of its insurance divisions and subsidiaries.