What are undivided earnings?

ENGLISHED ENGINES may be known to those who invest in companies as shareholders, and are certainly a well -known territory for any company that has shareholders. In this definition of Word's earnings, it does not mean employees' earnings, but is used to discuss the company's profits. These could usually be paid as dividends to investors, but it is not uncommon for society to maintain or maintain certain profits.

There are several reasons why companies maintain these payouts. Theoretically, companies usually use developed income to reinvest in business. This reinvestment has a promise that companies will grow and earn even more money in the future. Some of them will be paid as dividends and some of them will still be maintained for larger investments. A healthy society is usually a company that grows, which increases its annual earnings and is not lagging behind, or simply trying to keep up with expenditure. In this ideal company scenario, it keeps money back asThe means to become more successful and more successful and could spend some undivided earnings in matters such as acquisition, research, new devices or marketing.

In some examples of undivided earnings, society is trying to keep the head above the water. They must reinvest into the equipment that breaks up to still earn a permanent amount, or are still in debt and must reinvest the money maintained in the repayment of debts. In these cases, the company's action is important, but it does not say much about the ability of society to grow in the future. When companies constantly evoke income to maintain the same status or prevent more money from losing, it may not be the best known investment. Those who have qualified advice to investors often propose to look for those companies that use undivided profit wise and well for growth.

undivided earnings are also defined in simplethe formula. This is the total amount of all undivided earnings currently added to the net income of the company. The total amount of dividends paid is deducted from this account to earn earnings at the end of the year or at the end of the year. The amount of money that is actually available after maintaining is not always the same as the overall earnings. Usually the money was invested, so it is not necessarily available to companies or shareholders. Rather, many see any total value as the money that has been invested in the growth of the company.