Switch to:
Medtronic PLC (NYSE:MDT)
Retained Earnings
$52,848 Mil (As of Jul. 2016)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Medtronic PLC's retained earnings for the quarter that ended in Jul. 2016 was $52,848 Mil.

Medtronic PLC's quarterly retained earnings increased from Jan. 2016 ($53,781 Mil) to Apr. 2016 ($53,931 Mil) but then declined from Apr. 2016 ($53,931 Mil) to Jul. 2016 ($52,848 Mil).

Medtronic PLC's annual retained earnings increased from Apr. 2014 ($19,940 Mil) to Apr. 2015 ($54,414 Mil) but then declined from Apr. 2015 ($54,414 Mil) to Apr. 2016 ($53,931 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 local exchange's currency.

Medtronic PLC Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
Retained Earnings 10,92511,71013,27214,82616,08517,48219,06119,94054,41453,931

Medtronic PLC Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
Retained Earnings 19,63719,84620,73554,41454,16553,74053,78153,93152,84852,514
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)
FEEDBACK