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 allows dividends to be paid out of a company’s distributable profits.
Distributable surplus for the current year totaled $363 million as compared to $417 million for the previous year.
Recent losses mean the company has no distributable reserves, making a payout to shareholders illegal under rules designed to protect creditors.

(Definition of “distributable profit” from the Cambridge Business English Dictionary © Cambridge University Press)