earned surplus

Definition

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. also called retained earnings or accumulated earnings or unappropriated profit.

Use earned surplus in a sentence

You should try and figure out a way to use your earned surplus to make even more money for you.

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The strategy of the company was to use the earned surplus efficiently so the shareholders would realize value over time.

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Denise used the earned surplus to rebuild essential infrastructure instead of paying it out to investors, and they were fine with this typical use of retained earnings.

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earned premium unappropriated profit