GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Ally Financial Inc (NYSE:ALLY) » Definitions » 3-Year RORE %

Ally Financial (Ally Financial) 3-Year RORE % : -40.45% (As of Dec. 2023)


View and export this data going back to 2013. Start your Free Trial

What is Ally Financial 3-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Ally Financial's 3-Year RORE % for the quarter that ended in Dec. 2023 was -40.45%.

The industry rank for Ally Financial's 3-Year RORE % or its related term are showing as below:

ALLY's 3-Year RORE % is ranked worse than
78.88% of 502 companies
in the Credit Services industry
Industry Median: 7.81 vs ALLY: -40.45

Ally Financial 3-Year RORE % Historical Data

The historical data trend for Ally Financial's 3-Year RORE % 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.

Ally Financial 3-Year RORE % Chart

Ally Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.70 -1.10 29.49 15.91 -40.45

Ally Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
3-Year RORE % 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 -11.81 -26.02 -31.19 -40.45 -

Competitive Comparison of Ally Financial's 3-Year RORE %

For the Credit Services subindustry, Ally Financial's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ally Financial's 3-Year RORE % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Ally Financial's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Ally Financial's 3-Year RORE % falls into.



Ally Financial 3-Year RORE % Calculation

Ally Financial's 3-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 2.45-7.95 )/( 14.47-3.39 )
=-5.5/11.08
=-49.64 %

* 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.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 3-year before.


Ally Financial  (NYSE:ALLY) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Ally Financial 3-Year RORE % Related Terms

Thank you for viewing the detailed overview of Ally Financial's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ally Financial (Ally Financial) Business Description

Traded in Other Exchanges
Address
500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, personal loans, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.
Executives
David J Debrunner officer: VP, CAO, Controller
Thomas P Gibbons director THE BANK OF NEW YORK MELLON CORPORATION, 225 LIBERTY STREET, NEW YORK NY 10286
Russell E. Hutchinson officer: Chief Financial Officer C/O ALLY FINANCIAL INC., 500 WOODWARD AVE., 10TH FLOOR, DETROIT MI 48226
Marjorie Magner director GANNETT CO., INC., 7950 JONES BRANCH DRIVE, MCLEAN VA 22107
Bradley J. Brown officer: Interim CFO C/O ALLY FINANCIAL INC., 500 WOODWARD AVE., 10TH FLOOR, DETROIT MI 48226
Melissa Goldman director C/O ALLY FINANCIAL INC, 500 WOODWARD AVE, 10TH FLOOR, DETROIT MI 48226
David Reilly director C/O ALLY FINANCIAL INC., 500 WOODWARD AVE, 10TH FLOOR, DETROIT MI 48226
Jason E. Schugel officer: Chief Risk Officer ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Douglas R. Timmerman officer: President, Auto Finance ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Diane E. Morais officer: CEO & President, Ally Bank ALLY FINANCIAL INC., 440 SOUTH CHURCH STREET, CHARLOTTE NC 28202
Scott A Stengel officer: General Counsel 1010 GRAND BLVD, KANSAS CITY MO 64106
Jeffrey Jonathan Brown officer: Sr Executive Vice President C/O ALLY FINANCIAL INC., 200 RENAISSANCE CENTER, DETROIT MI 48265
Jennifer A. Laclair officer: Chief Financial Officer ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Mayree C Clark director C/O ALLY FINANCIAL INC., 200 RENAISSANCE CENTER, DETROIT MI 48265
Hobbs Franklin W Iv director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202