Switch to:
BGC Partners Inc (NAS:BGCP)
Retained Earnings
$-168 Mil (As of Dec. 2013)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. BGC Partners Inc's retained earnings for the quarter that ended in Dec. 2013 was $-168 Mil.

BGC Partners Inc's quarterly retained earnings declined from Jun. 2013 ($-146 Mil) to Sep. 2013 ($-146 Mil) and declined from Sep. 2013 ($-146 Mil) to Dec. 2013 ($-168 Mil).

BGC Partners Inc's annual retained earnings declined from Dec. 2011 ($-81 Mil) to Dec. 2012 ($-147 Mil) and declined from Dec. 2012 ($-147 Mil) to Dec. 2013 ($-168 Mil).


Definition

Retained Earnings is the accumulated portion of net income that is not distributed to shareholders. Because the net income was not distributed to shareholders, shareholders’ equity is increased by the same amount.

Of course, if a company loses, it is called retained losses, or accumulated losses.


Explanation

Historically profitable companies sometimes have negative retained earnings. This is because they have cumulatively paid out more to shareholders than they reported in profits.

For example, in 2011, Microsoft had negative retained earnings. This does not mean the company lost more money than it made over the years. It just means it paid out more money than it earned.

If a company has negative retained earnings, investors should check the 10-year financial results. They should not assume that negative retained earnings prove a company has generally lost money in the past.

Of course, many companies with negative retained earnings have indeed lost money in the past.

Retained Earnings: Warren Buffett’s Secret.

One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.

If the company loses more than it has accumulated, retained earnings is negative.

If a company isn’t adding to its retained earnings, it isn’t growing its net worth.

Rate of growth of retained earnings is good indicator whether it’s benefiting from a competitive advantage.

Microsoft is negative because it chose to buyback stock and pay dividends.

The more earnings retained, the faster it grows and increases growth rate for future earnings.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

BGC Partners Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Retained Earnings 131515-172-2-24-81-147-168

BGC Partners Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Retained Earnings -63-81-96-118-143-147-160-146-146-168
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide