Undistributed profits --- why is it negative?

Title says it all. Google tells me the definition of undistributed profits is earnings that are not yet paid out as dividends.

From my understanding this amount is >= 0. What does it mean to be negative? Do investors owe the company money?

Thanks.

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2 Comments

PeRmAnEnTiNtErN

IB

5y

Do you have an example for where you saw this?

The only way I could see this happening is if you have an pass through enterprise (S-corps) that pass along earnings so an individual can record those losses for themselves.

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Authored by: Certified Investment Banking Professional - 2nd Year AssociateCertified Investment Banking Pro

b3h3lit

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5y

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Undistributed profits --- why is it negative?

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Undistributed profits --- why is it negative?

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