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Yahoo Japan Corp (OTCPK:YAHOY)
Retained Earnings
$5,766 Mil (As of Dec. 2013)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Yahoo Japan Corp's retained earnings for the quarter that ended in Dec. 2013 was $5,766 Mil.

Yahoo Japan Corp's quarterly retained earnings increased from Jun. 2013 ($5,391 Mil) to Sep. 2013 ($5,807 Mil) but then declined from Sep. 2013 ($5,807 Mil) to Dec. 2013 ($5,766 Mil).

Yahoo Japan Corp's annual retained earnings increased from Mar. 2011 ($4,519 Mil) to Mar. 2012 ($5,640 Mil) but then declined from Mar. 2012 ($5,640 Mil) to Mar. 2013 ($5,402 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.

Yahoo Japan Corp Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Retained Earnings 4377791,0831,5132,3042,2643,2154,5195,6405,402

Yahoo Japan Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Retained Earnings 5,2855,5985,6405,8716,2085,8555,4025,3915,8075,766
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