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Tesla Inc  (NAS:TSLA) Retained Earnings: $-5,457 Mil (As of Sep. 2018)

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Tesla Inc's retained earnings for the quarter that ended in Sep. 2018 was $-5,457 Mil.

Tesla Inc's quarterly retained earnings declined from Mar. 2018 ($-5,051 Mil) to Jun. 2018 ($-5,769 Mil) but then increased from Jun. 2018 ($-5,769 Mil) to Sep. 2018 ($-5,457 Mil).

Tesla Inc's annual retained earnings declined from Dec. 2015 ($-2,322 Mil) to Dec. 2016 ($-2,997 Mil) and declined from Dec. 2016 ($-2,997 Mil) to Dec. 2017 ($-4,974 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.

Tesla Inc Annual Data

Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Retained Earnings Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1,139.62 -1,433.66 -2,322.32 -2,997.24 -4,974.30

Tesla Inc Quarterly Data

Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 -4,298.96 -4,974.30 -5,051.29 -5,768.83 -5,457.32

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.


Headlines

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