distributable profit Meaning in the Cambridge English Dictionary
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Meaning of “distributable profit” in the English Dictionary

"distributable profit" in Business English

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distributable profitnoun [C, usually plural]

uk   us   (also distributable reserve, also distributable surplus)
ACCOUNTING, FINANCE the ​amount of a company’s ​profit that is ​available to ​pay dividends to ​shareholders in a particular ​period: The Companies ​Act only ​allowsdividends to be ​paid out of a company’s distributable ​profits. Distributable ​surplus for the ​currentyeartotaled $363 million as compared to $417 million for the previous ​year. Recent ​lossesmean the ​company has no distributable ​reserves, making a ​payout to ​shareholdersillegal under ​rulesdesigned to ​protectcreditors.
(Definition of distributable profit from the Cambridge Business English Dictionary © Cambridge University Press)
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