retaining profit

USAGE SUMMARY

The phrase "retaining profit" is correct and usable in written English.
It can be used in contexts related to finance or business, particularly when discussing the practice of keeping earnings within a company rather than distributing them to shareholders. Example: "The company is focused on retaining profit to reinvest in future growth opportunities."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

Multinationals can generally defer paying tax to their home governments by retaining profit earned abroad in their foreign units.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

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

The New York Times

They can improve their capital ratios by retaining profits, which adds to capital, and shrinking their balance sheets.

The New York Times

The tentative plan would give banks until June 30 to increase their reserves, which they could achieve by selling new shares, retaining profits or selling assets.

The New York Times

Santander bolstered its reserves largely by converting 6.8 billion euros in bonds into shares, retaining profits and transferring a stake in its Brazilian unit to an outside investor.

The New York Times

They argue that there is no reason why healthy banks cannot raise more capital by retaining profits or selling new shares.

The New York Times

Their collective profit in 2009 — a bad year for banking — was 209 billion euros, suggesting that most institutions would be able to meet the new requirements by retaining profits instead of paying them out to shareholders.

The New York Times

Santander said it had met the ratio largely by converting 6.8 billion euros in bonds into shares, retaining profits and transferring a 4.4 percent position in its Brazilian unit to an outside investor.

The New York Times

The bank, based in Madrid, increased its reserves largely by converting 6.8 billion euros in bonds into shares, retaining profits and selling a stake in its Brazilian unit to an outside investor.

The New York Times

"There is only one solution and that is for the board to send more money back to the farmers, rather than retaining profits and sending money to the Collins Street investors," Fitzgibbon said.

The Guardian

It published a core tier one ratio of 4.5% for the end of December 2007 – a level that regulators now regard as inadequate and which Goodwin had hoped to rebuild by retaining profits and selling off businesses.

The Guardian - Business

Expert writing Tips

Best practice

When discussing financial strategy, be specific about the purpose of "retaining profit". For example, mention whether it's for reinvestment, debt reduction, or weathering economic downturns.

Common error

Don't confuse "retaining profit" with simply having revenue. "Retaining profit" implies a conscious decision to keep earnings after expenses and distributions are accounted for within the company.

Linguistic Context

The phrase "retaining profit" functions primarily as a verb phrase acting upon a noun, describing the action of keeping earnings within an entity. Ludwig AI confirms its usability, highlighting contexts related to finance and business.

Expression frequency: Uncommon

Frequent in

News & Media

35%

Formal & Business

33%

Science

32%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "retaining profit" is a grammatically correct and usable expression referring to a deliberate strategy of keeping earnings within a company, as confirmed by Ludwig AI. While not exceptionally common, it is frequently found in news articles, formal business contexts, and scientific publications. Alternative expressions include "profit retention", "keeping earnings", and "accumulating profits". Understanding the implications of "retaining profit", particularly its impact on reinvestment and financial stability, is crucial in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

profit retention

Changes the verb-noun order to a noun phrase focusing on the action of retaining profits.

keeping earnings

Uses a more general term "earnings" instead of "profit" making it slightly less formal.

holding onto profits

Emphasizes the act of securing and maintaining profits.

accumulating profits

Focuses on the growth of profits over time through retention.

plowing back earnings

More technical term, mainly employed in accounting and finance, focuses on reinvesting profit in the company.

reinvesting earnings

Focuses on using retained profits for further investment and growth.

capital accumulation

Broader term encompassing the increase of capital through various means, including profit retention.

saving revenue

Shifts the focus to saving, implying a more conservative approach to profit management.

non-distribution of profits

A formal way to express retaining profit emphasizing the decision not to distribute.

deferring profit distribution

Highlights the postponement of profit distribution for strategic reasons.

FAQs

How can I use "retaining profit" in a sentence?

You can use "retaining profit" to describe a company's strategy of keeping earnings within the business rather than distributing them as dividends. For example: "The company is focused on "retaining profit" to fund future expansion."

What are some alternatives to "retaining profit"?

Alternatives include "keeping earnings", "profit retention", or "accumulating profits", depending on the specific context.

What's the difference between "retaining profit" and reinvesting earnings?

"Retaining profit" is the act of holding onto earnings within the company. "Reinvesting earnings" is the subsequent action of using those retained profits for further investment and growth initiatives.

Why is "retaining profit" important for businesses?

Retaining profit allows businesses to fund internal growth, manage debt, and prepare for unforeseen economic challenges. It provides financial stability and independence.