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Applied Materials Inc  (NAS:AMAT) Retained Earnings: $17,383 Mil (As of Jul. 2017)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Applied Materials Inc's retained earnings for the quarter that ended in Jul. 2017 was $17,383 Mil.

Applied Materials Inc's quarterly retained earnings increased from Jan. 2017 ($15,847 Mil) to Apr. 2017 ($16,564 Mil) and increased from Apr. 2017 ($16,564 Mil) to Jul. 2017 ($17,383 Mil).

Applied Materials Inc's annual retained earnings increased from Oct. 2014 ($13,072 Mil) to Oct. 2015 ($13,967 Mil) and increased from Oct. 2015 ($13,967 Mil) to Oct. 2016 ($15,252 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.

Applied Materials Inc Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12,700.00 12,487.00 13,072.00 13,967.00 15,252.00

Applied Materials Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 14,750.00 15,252.00 15,847.00 16,564.00 17,383.00

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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