distributabel

Distributabel is a Dutch term used in accounting and corporate law to describe profits or reserves that may be distributed to shareholders. In English-language reporting the closest equivalents are distributable profits or distributable reserves. The concept refers to amounts that a company may pay out as dividends while still meeting legal requirements and maintaining solvency.

In practice, distributable amounts are determined by rules that vary by jurisdiction, accounting standards, and contractual obligations. They are derived from the company’s retained earnings and current-year net profit, after deducting reserves required by law or by lenders, and after accounting for any losses or restrictions from agreements. The result indicates how much profit remains available for distribution without compromising the company’s financial position.

A related concept is distributable cash flow, which focuses on the cash available for distribution after operational needs, capital expenditures, and other cash requirements. While distributable profits deal with accounting results, distributable cash flow addresses liquidity and cash sustainability.

Calculation and reporting can differ across jurisdictions. In many systems, the distributable amount is disclosed in annual reports or financial statements to inform shareholders and regulators about dividend capacity and governance. Because the rules governing distributable amounts depend on local law and standards, companies often provide reconciliations between net income, reserves, and the distributable figure to ensure transparency.

Overall, distributabel describes the portion of a company’s profits or reserves that is eligible for distribution, reflecting regulatory solvency tests, contractual restrictions, and the company’s governance practices.