Ultrapay Limited (ASX:ULT) Retained Earnings : A$-39.08 Mil (As of Dec. 2006)

Ultrapay Limited Retained Earnings Chart

Ultrapay Limited Annual Data
	Trend	Jun97	Jun98	Jun99	Jun00	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06
Retained Earnings		Get a 7-Day Free Trial					-17.80	-18.23	-18.12	-21.44	-33.92

Ultrapay Limited Semi-Annual Data
	Dec96	Jun97	Dec98	Jun99	Dec99	Jun00	Dec00	Jun01	Dec01	Jun02	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06
Retained Earnings	Get a 7-Day Free Trial														-19.64	-21.44	-22.80	-33.92	-39.08

Ultrapay Limited Retained Earnings Calculation

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.

Ultrapay Limited  (ASX:ULT) Retained Earnings 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.

Ultrapay Limited (ASX:ULT) Business Description