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Novogen Ltd  (NAS:NVGN) Retained Earnings: \$-118.81 Mil (As of Jun. 2016)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Novogen Ltd's retained earnings for the quarter that ended in Jun. 2016 was \$-118.81 Mil.

Novogen Ltd's quarterly retained earnings increased from Jun. 2015 (\$-114.54 Mil) to Dec. 2015 (\$-110.35 Mil) but then declined from Dec. 2015 (\$-110.35 Mil) to Jun. 2016 (\$-118.81 Mil).

Novogen Ltd's annual retained earnings increased from Jun. 2014 (\$-132.31 Mil) to Jun. 2015 (\$-114.54 Mil) but then declined from Jun. 2015 (\$-114.54 Mil) to Jun. 2016 (\$-118.81 Mil).

Historical Data

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

Novogen Ltd Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Retained Earnings -191.51 -126.38 -132.31 -114.54 -118.81

Novogen Ltd Semi-Annual Data

 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Retained Earnings -118.54 -114.54 -110.35 -118.81 -120.85

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.