retain profits

USAGE SUMMARY

The phrase "retain profits" is correct and usable in written English.
It can be used in financial or business contexts to refer to the practice of keeping earnings within a company rather than distributing them to shareholders. Example: "The company decided to retain profits this year to reinvest in new projects and expand its operations."

✓ Grammatically correct

News & Media

Encyclopedias

Wiki

Human-verified examples from authoritative sources

Exact Expressions

12 human-written examples

In the dog-eat-dog capitalist world of his day, Carnegie had a simple and brilliantly successful formula for succeeding in the steel business: quickly adopt the latest technology so as always to be the low-cost producer and thus profitable, even in bad times; retain profits in good times to be able to snap up failing competitors at bargain prices.

The New York Times - Books

To the contrary, an army of lawyers, accountants, lobbyists and executives is at work throughout corporate America, finding legal ways to minimize taxes and retain profits.

The New York Times

Witness the proliferation of opaque outfits called state corporations, which manage public assets but retain profits for their own benefit and submit to little public scrutiny.

The Economist

For those who did not get the message, the Treasury rammed it home: the move underlined that they "will not be allowed to retain profits, rebuild capital, and return to the market in their prior form".

The Economist

Peasants, far from being tied to the land, as has been assumed, were free to set up manufacturing, distribution and service businesses and these were allowed to retain profits, pay dividends, issue share capital and even a form of stock option.

The Economist

Opponents of double taxation on corporate earnings contend that the practice is both unfair and inefficient, since it treats corporate income differently than other forms of income and encourages companies to finance themselves with debt, which is tax deductible, and to retain profits rather than pass them on to investors.

Encyclopedia Britannica

Human-verified similar examples from authoritative sources

Similar Expressions

48 human-written examples

To increase capital, they must either sell new shares to investors or retain profit rather than paying out the money to shareholders.

The New York Times

It allows companies indefinitely to defer payment of some tax on their retained profits.

The Economist

Mittelstand firms themselves usually prefer steady growth from retained profits to borrowing.

The Economist

The company has decided not to borrow money at all, meeting its modest financing needs through retained profits.

The New York Times

But they said the banks would be able to raise their capital ratios by retaining profits or selling riskier assets.

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial strategy, be specific about why they choose to "retain profits". Mentioning reinvestment plans or debt reduction clarifies the intent.

Common error

Be careful not to imply that "retaining profits" is always a negative practice. While excessive profit retention without clear investment plans can be criticized, it's often a necessary strategy for growth and stability.

Linguistic Context

The phrase "retain profits" functions primarily as a verb phrase + noun combination. It describes the action of a company or entity choosing to keep its earnings rather than distributing them. Ludwig AI confirms that the phrase is correct and usable.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Encyclopedias

10%

Wiki

10%

Less common in

Academia

10%

Formal & Business

0%

Science

10%

Ludwig's WRAP-UP

In summary, "retain profits" is a grammatically correct phrase that describes a company's decision to keep its earnings instead of distributing them. Ludwig AI supports this assessment. While not extremely common, the phrase is frequently used in news and media, encyclopedias, and wiki contexts. It's important to use this phrase accurately, recognizing that while "retaining profits" can be beneficial for future growth and stability, it is important to avoid conveying the impression that the company is hoarding money, without a clear strategy for the next financial steps. Alternatives include "keep earnings" or "hold onto profits".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

keep earnings

Focuses on the act of holding onto earnings rather than distributing them.

hold onto profits

Emphasizes the act of maintaining possession of profits.

accumulate earnings

Highlights the gradual gathering of profits over time.

preserve capital

Refers to safeguarding the overall financial resources of a company.

reinvest revenues

Specifies the act of channeling profits back into the business.

plow back earnings

An informal term for reinvesting profits into the business.

maintain solvency

Focuses on keeping the company financially stable, which retaining profits can help achieve.

build up reserves

Emphasizes accumulating a financial safety net.

defer distribution

Indicates postponing the payment of dividends or other distributions to shareholders.

hoard earnings

Implies accumulating profits excessively, possibly negatively.

FAQs

How can I use "retain profits" in a sentence?

You can use "retain profits" to describe a company's decision to keep its earnings for reinvestment or other strategic purposes. For example: "The company decided to "retain profits" to fund its research and development initiatives."

What are some alternatives to "retain profits"?

Alternatives to "retain profits" include "keep earnings", "hold onto profits", or "accumulate earnings", depending on the specific nuance you want to convey.

Is it always beneficial for a company to "retain profits"?

While "retaining profits" can be beneficial for funding growth and stability, it's not always the best strategy. Sometimes, distributing profits to shareholders through dividends or buybacks can be more advantageous, depending on market conditions and investor expectations.

What factors influence a company's decision to "retain profits"?

Factors influencing a company's decision to "retain profits" include investment opportunities, debt levels, tax implications, and shareholder expectations. Companies must carefully weigh these factors to determine the optimal profit distribution strategy.