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Lonrho (LSE:LONR) Retained Earnings : £-33.3 Mil (As of Dec. 2012)


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What is Lonrho Retained Earnings?

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Lonrho's retained earnings for the quarter that ended in Dec. 2012 was £-33.3 Mil.

Lonrho's quarterly retained earnings increased from Sep. 2011 (£-34.8 Mil) to Jun. 2012 (£-5.5 Mil) but then declined from Jun. 2012 (£-5.5 Mil) to Dec. 2012 (£-33.3 Mil).

Lonrho's annual retained earnings increased from Sep. 2010 (£-36.1 Mil) to Sep. 2011 (£0.0 Mil) but then declined from Sep. 2011 (£0.0 Mil) to Dec. 2012 (£-33.3 Mil).


Lonrho Retained Earnings Historical Data

The historical data trend for Lonrho'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.

* Premium members only.

Lonrho Retained Earnings Chart

Lonrho Annual Data
Trend Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Dec12
Retained Earnings
Get a 7-Day Free Trial Premium Member Only Premium Member Only -33.00 -39.20 -36.10 - -33.30

Lonrho Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Jun12 Dec12
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 -36.10 -37.40 -34.80 -5.50 -33.30

Lonrho 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.


Lonrho  (LSE:LONR) 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.


Lonrho (LSE:LONR) Business Description

Traded in Other Exchanges
N/A
Address
Level 2, 25 Berkeley Square, London, GBR, W1J 6HB
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

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