current earnings and profits

Definition

Represents the upper limit on the amount of dividend income that is recognized on earnings distributions. Current earnings and profits is calculated by combining tax-exempt with taxable income and subtracting certain non-deductible items. Current earnings and profits must be paid out to currently to avoid becoming accumulated earnings.

Use this term in a sentence

Our current earnings and profits were really good and I wondered what that meant for us because we wanted to be really big.

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We were extremely pleased to announce to the press our current earnings and profits, which were considerably above analyst expectations.

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At the end of every fiscal quarter, our finance team works on reports in order to determine the current earnings and profits of our company.

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current dollars current earnings per share (current EPS)