EL (ASX:EIM) Retained Earnings: A$-25.65 Mil (As of Dec. 2013)

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What is EL Retained Earnings?

EL ASX:EIM Retained Earnings is A$-25.65 Mil as of Dec. 2013. The stock has 3 warning signs investors should review.

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. EL's retained earnings for the quarter that ended in Dec. 2013 was A$-25.65 Mil.

EL's quarterly retained earnings declined from Dec. 2012 (A$-25.47 Mil) to Jun. 2013 (A$-25.57 Mil) and declined from Jun. 2013 (A$-25.57 Mil) to Dec. 2013 (A$-25.65 Mil).

EL's annual retained earnings declined from Dec. 2011 (A$-25.19 Mil) to Dec. 2012 (A$-25.47 Mil) and declined from Dec. 2012 (A$-25.47 Mil) to Dec. 2013 (A$-25.65 Mil).

EL  (ASX:EIM) Retained Earnings 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.

EL Retained Earnings Historical Data

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The historical data trend for EL's Retained Earnings can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

EL Retained Earnings Chart

EL Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Retained Earnings
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.47 -25.04 -25.19 -25.47 -25.65

EL Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
Retained Earnings Get a 7-Day Free Trial 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 -25.19 -25.34 -25.47 -25.57 -25.65

EL Retained Earnings 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.

Frequently Asked Questions Learn more about Retained Earnings →
What does a Retained Earnings of A$-25.65 Mil mean?
EL (ASX:EIM) has a Retained Earnings of A$-25.65 Mil as of Dec. 2013. Retained earnings is the amount of net income not issued to shareholders. View historical data on EL and its competitors.
Is EL's Retained Earnings too high?
EL's current Retained Earnings is A$-25.65 Mil.
How does EL's Retained Earnings compare to competitors?
EL's Retained Earnings is A$-25.65 Mil. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Retained Earnings for a company?
A good Retained Earnings depends on the industry context. However, Retained Earnings should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Retained Earnings mean?
A high Retained Earnings can signal that a stock is expensive relative to its fundamentals. Retained earnings is the amount of net income not issued to shareholders. View historical data on EL and its competitors. EL's current Retained Earnings is A$-25.65 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EL stock overvalued right now?
EL (ASX:EIM) has a current Retained Earnings of A$-25.65 Mil. The current Retained Earnings is A$-25.65 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Retained Earnings calculated?
Retained Earnings is calculated from a company's financial statements. For EL (ASX:EIM), the current Retained Earnings is A$-25.65 Mil as of Dec. 2013. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

EL Business Description

Industry
EL Corporation Limited was incorporated and domiciled in Australia. The Company's activities during the financial year were the import, design, sales, service and support of computer and communication systems and equipment; provision of information technology education, systems design; and integration and development of consultancy services. The activities were changed at the annual general meeting held on 31st May 2012, with shareholders' approval to include mining and exploration activities in connection with the intended acquisition of the Birthday Mine. The Company operates in Australia, New Zealand, and Taiwan.