Switch to:
Tesco PLC (OTCPK:TSCDY)
Retained Earnings
$13,780 Mil (As of Aug. 2014)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Tesco PLC's retained earnings for the quarter that ended in Aug. 2014 was $13,780 Mil.

Tesco PLC's quarterly retained earnings increased from Aug. 2013 ($15,712 Mil) to Feb. 2014 ($16,106 Mil) but then declined from Feb. 2014 ($16,106 Mil) to Aug. 2014 ($13,780 Mil).

Tesco PLC's annual retained earnings declined from Feb. 2012 ($19,216 Mil) to Feb. 2013 ($16,308 Mil) and declined from Feb. 2013 ($16,308 Mil) to Feb. 2014 ($16,106 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.

Tesco PLC Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Retained Earnings 8,4348,66611,16313,49911,22114,61918,06019,21616,30816,106

Tesco PLC Semi-Annual Data

Feb10Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14Aug14
Retained Earnings 14,61914,77318,06019,08819,21618,88516,30815,71216,10613,780
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