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CarMax Inc  (NYSE:KMX) Retained Earnings: $1,976 Mil (As of Aug. 2017)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. CarMax Inc's retained earnings for the quarter that ended in Aug. 2017 was $1,976 Mil.

CarMax Inc's quarterly retained earnings increased from Feb. 2017 ($1,883 Mil) to May. 2017 ($1,934 Mil) and increased from May. 2017 ($1,934 Mil) to Aug. 2017 ($1,976 Mil).

CarMax Inc's annual retained earnings declined from Feb. 2015 ($1,994 Mil) to Feb. 2016 ($1,747 Mil) but then increased from Feb. 2016 ($1,747 Mil) to Feb. 2017 ($1,883 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.

CarMax Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,993.77 2,214.22 1,994.22 1,746.80 1,883.28

CarMax Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 1,858.22 1,821.36 1,883.28 1,933.76 1,975.86

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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