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Sycamore Networks Inc  (OTCPK:SCMR) Retained Earnings: $-1,158.88 Mil (As of Jan. 2013)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Sycamore Networks Inc's retained earnings for the quarter that ended in Jan. 2013 was $-1,158.88 Mil.

Sycamore Networks Inc's quarterly retained earnings declined from Jul. 2012 ($-1,146.88 Mil) to Oct. 2012 ($-1,153.64 Mil) and declined from Oct. 2012 ($-1,153.64 Mil) to Jan. 2013 ($-1,158.88 Mil).

Sycamore Networks Inc's annual retained earnings declined from Jul. 2010 ($-1,116.16 Mil) to Jul. 2011 ($-1,133.96 Mil) and declined from Jul. 2011 ($-1,133.96 Mil) to Jul. 2012 ($-1,146.88 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.

Sycamore Networks Inc Annual Data

Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1,047.78 -1,101.36 -1,116.16 -1,133.96 -1,146.88

Sycamore Networks Inc Quarterly Data

Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13
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 -1,139.27 -1,144.36 -1,146.88 -1,153.64 -1,158.88

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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