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Broadcom Corp  (NAS:BRCM) Retained Earnings: $-2,431 Mil (As of Sep. 2015)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Broadcom Corp's retained earnings for the quarter that ended in Sep. 2015 was $-2,431 Mil.

Broadcom Corp's quarterly retained earnings increased from Mar. 2015 ($-3,246 Mil) to Jun. 2015 ($-2,860 Mil) and increased from Jun. 2015 ($-2,860 Mil) to Sep. 2015 ($-2,431 Mil).

Broadcom Corp's annual retained earnings increased from Dec. 2012 ($-4,531 Mil) to Dec. 2013 ($-4,107 Mil) and increased from Dec. 2013 ($-4,107 Mil) to Dec. 2014 ($-3,455 Mil).


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Broadcom Corp Annual Data

Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6,177.27 -5,250.00 -4,531.00 -4,107.00 -3,455.00

Broadcom Corp Quarterly Data

Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3,845.00 -3,455.00 -3,246.00 -2,860.00 -2,431.00

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.


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.


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