Dividends are a way in which a company distributes profits to shareholders, but it is not necessarily a distribution of all of the company's profits.
At the end of each fiscal year, a company develops a financial statement that includes an income statement (also known as an income statement). The statement shows the total revenue and total expenses earned by the company during the period, and calculates the company's net profit (total revenue minus total expenses). The company can then pay part of the net profit as dividends (i.e., dividends) to shareholders according to its own distribution policies and circumstances.
The determination of the amount of dividends is usually decided by the company's management and board of directors, who consider a range of factors such as the company's financial situation, business development plans, capital needs, shareholder interests, etc. When making decisions, they take these factors into account and develop an appropriate dividend policy.
Dividends can be paid in cash or in the form of ** or other company assets. This means that dividends are not necessarily paid directly from the company's cash reserves, but can be achieved in other ways, such as issuing new shares to shareholders.
It is important to note that company dividends are not mandatory, and companies can choose not to pay dividends or only distribute a small amount of profits. It depends on the company's specific circumstances and decisions.
In general, dividends are a way for a company to distribute profits to shareholders, but the amount and manner of dividends depends on the decisions of the company and its management, and not all of the company's profits.