Return On Retained Earnings - RORE


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.

BREAKING DOWN '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.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Unappropriated Retained Earnings

    Any portion of company earnings that are not classified as appropriated ...
  4. Retained Earnings

    Retained earnings is the percentage of net earnings not paid ...
  5. Profit

    A financial benefit that is realized when the amount of revenue ...
  6. Rights of Accumulation - ROA

    A right that allows a shareholder to receive reduced sales charges ...
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