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.
Energy Focus's 3-Year RORE % for the quarter that ended in Dec. 2023 was -47.80%.
The industry rank for Energy Focus's 3-Year RORE % or its related term are showing as below:
EFOI's 3-Year RORE % is ranked worse than 81.07% of 391
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.89
vs EFOI: -47.80
Energy Focus 3-Year RORE % Historical Data
The historical data trend for Energy Focus'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.
Competitive Comparison of Energy Focus's 3-Year RORE %
For the Furnishings, Fixtures & Appliances subindustry, Energy Focus'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.
Energy Focus's 3-Year RORE % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Energy Focus's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Energy Focus's 3-Year RORE % falls into.
Energy Focus 3-Year RORE % Calculation
Energy Focus's 3-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:
* 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.
Energy Focus (NAS:EFOI) 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.
Energy Focus 3-Year RORE % Related Terms
Thank you for viewing the detailed overview of Energy Focus's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Energy Focus Inc engages in the design, development, manufacturing, marketing, and sale of energy-efficient lighting systems and controls. It serves the military maritime market and general commercial markets. Its product offerings include Military maritime LED lighting products such as military intelligible, globe lights, berth lights, and military fixtures and Commercial products such as LED fixtures and panels, LED down-lights, LED dock lights, wall-packs, and LED retrofit kits. Geographically, it operates in the United States and other countries. Its products include Commercial products and MMM products. It generates a majority of its sales from Military maritime products in the United States.
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