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REC (BOM:532955) 3-Year RORE % : 17.31% (As of Sep. 2024)


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What is REC 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. REC's 3-Year RORE % for the quarter that ended in Sep. 2024 was 17.31%.

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

BOM:532955's 3-Year RORE % is ranked better than
63.74% of 513 companies
in the Credit Services industry
Industry Median: 5.03 vs BOM:532955: 17.31

REC 3-Year RORE % Historical Data

The historical data trend for REC'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.

REC 3-Year RORE % Chart

REC Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.60 21.58 30.29 12.62 16.01

REC Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 15.08 13.74 16.01 17.03 17.31

Competitive Comparison of REC's 3-Year RORE %

For the Credit Services subindustry, REC'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.


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

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

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



REC 3-Year RORE % Calculation

REC's 3-Year RORE % for the quarter that ended in Sep. 2024 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 )
=( 56.39-38.84 )/( 143.47-42.075 )
=17.55/101.395
=17.31 %

* 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 Sep. 2024 and 3-year before.


REC  (BOM:532955) 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.


REC 3-Year RORE % Related Terms

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REC Business Description

Traded in Other Exchanges
Address
Plot No. I-4, Sector 29, Gurugram, HR, IND, 122001
REC Ltd is a nonbanking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. It comprises of only one business segment-lending to power, logistic and infrastructure sector. The majority of its revenue derives from long-term financing.

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