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FocalTech (TPE:5280) Retained Earnings : NT$1,327 Mil (As of Jun. 2014)


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What is FocalTech Retained Earnings?

Retained earnings is the accumulated portion of net income that is not distributed to shareholders. FocalTech's retained earnings for the quarter that ended in Jun. 2014 was NT$1,327 Mil.

FocalTech's quarterly retained earnings declined from Dec. 2012 (NT$1,533 Mil) to Jun. 2013 (NT$691 Mil) but then increased from Jun. 2013 (NT$691 Mil) to Jun. 2014 (NT$1,327 Mil).

FocalTech's annual retained earnings increased from . 20 (NT$0 Mil) to Dec. 2011 (NT$-251 Mil) and increased from Dec. 2011 (NT$-251 Mil) to Dec. 2012 (NT$1,533 Mil).

FocalTech Retained Earnings Historical Data

The historical data trend for FocalTech'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.

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FocalTech Retained Earnings Chart

FocalTech Annual Data
Trend Dec11 Dec12
Retained Earnings
-250.56 1,533.02

FocalTech Semi-Annual Data
Dec12 Jun13 Jun14
Retained Earnings 1,533.02 691.39 1,327.23

FocalTech 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.

FocalTech  (TPE:5280) 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.

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