Return On Retained Earnings - RORE

AAA

DEFINITION of 'Return On Retained Earnings - RORE'

A calculation to show how well the profits of the previous year were reinvested. RORE is expressed as a percentage. A high percentage would indicate that a company would be better off reinvesting into the business, whereas a low one would show that paying out dividends may be in the best interests of the company.

INVESTOPEDIA EXPLAINS 'Return On Retained Earnings - RORE'

As an investor, it can often be difficult to quantify a company's worth by simply looking at its balance sheet. A RORE calculation can help to alleviate some of the confusion and help clarify exactly what the numbers are trying to say. A general rule of thumb for investors is to look for companies with high RORE that is reinvested regularly.

RELATED TERMS
  1. Unappropriated Retained Earnings

    Any portion of company earnings that are not classified as appropriated ...
  2. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  3. Retained Earnings

    The percentage of net earnings not paid out as dividends, but ...
  4. Profit

    A financial benefit that is realized when the amount of revenue ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  6. Rights of Accumulation - ROA

    A right that allows a shareholder to receive reduced sales charges ...
Related Articles
  1. How To Calculate A Z-Score
    Markets

    How To Calculate A Z-Score

  2. Evaluating Retained Earnings: What Gets ...
    Fundamental Analysis

    Evaluating Retained Earnings: What Gets ...

  3. Find Quality Investments With ROIC
    Options & Futures

    Find Quality Investments With ROIC

  4. Use ROA To Gauge A Company's Profits
    Budgeting

    Use ROA To Gauge A Company's Profits

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center