Retained Earnigs : Consolidated and Company's !!!

[arnon26]

Please correct me , if I am wrong

Consolidated Retained Earnings = Mother Company's Retained Earnings + Mother Company's Share of Retained Earnings in Subsidiaries,,,,,

For Example :

Retained Earnings :

Consolidated : 9,000 Million Bahts
Company : 3,000 Million Bahts

Registered Stock : 900 Million Shares

Can I say that Company has a net Cash (Retained Earnings) 10 Baht per share ?

You can post in Thai na khrub...I just don't know how to type Thai...
Cheers...

[abscisic]

I do not think so, coz Althrough Retained earning in subsidiaries are including in mother's consolidated retained earning but net cash in subsidiaries are separated from mother's company bank account. Unless, Mother company receive cash in term of dividend from its subsidiaries. It will be cash in mother company.

Conclusion : Net cash and retained earning are difference from each others. Therefore, you can say that company has retained earning 10 Baht/share but not net cash 10 baht/share.

[arnon26]

Thank you khrab K.abscisic. Anyway, is it worth investing in a company having 9,000 million baht ( consolidated) with 900 million shares? The current stock price is around 18-19 baht per share.

[rrd]

มึนมากมาย...

[abscisic]

It has P/BV = 1.8. I need some more info about its revenue, its growth rate, its net profit etc in order to answer whether worth or not. Espeacially, what are asset that company has. Does it has intangible asset? You should consider only tangible asset because intangible asset is very difficult to be measured accurately. But basically you should not focus on Book value too much. Anyway, If a definition of worth is stock price lower than asset value. So, you should buy it below 10 baht krub.(P/BV below 1)