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Afterpay (Afterpay) 3-Year RORE % : 0.00% (As of Jun. 2021)


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What is Afterpay 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. Afterpay's 3-Year RORE % for the quarter that ended in Jun. 2021 was 0.00%.

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

AFTPY's 3-Year RORE % is not ranked *
in the Software industry.
Industry Median: 1.65
* Ranked among companies with meaningful 3-Year RORE % only.

Afterpay 3-Year RORE % Historical Data

The historical data trend for Afterpay'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.

Afterpay 3-Year RORE % Chart

Afterpay Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21
3-Year RORE %
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Afterpay Semi-Annual Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
3-Year RORE % Get a 7-Day Free Trial Premium Member Only - - - - -

Competitive Comparison of Afterpay's 3-Year RORE %

For the Software - Infrastructure subindustry, Afterpay'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.


Afterpay's 3-Year RORE % Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's 3-Year RORE % distribution charts can be found below:

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



Afterpay 3-Year RORE % Calculation

Afterpay's 3-Year RORE % for the quarter that ended in Jun. 2021 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 )
=( -0.417--0.128 )/( -0.6-0 )
=-0.289/-0.6
=48.17 %

* 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 Jun. 2021 and 3-year before.


Afterpay  (OTCPK:AFTPY) 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.


Afterpay 3-Year RORE % Related Terms

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Afterpay (Afterpay) Business Description

Traded in Other Exchanges
N/A
Address
406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000
Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.