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Associated British Foods (LSE:ABF) 3-Year RORE % : 23.41% (As of Feb. 2024)


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What is Associated British Foods 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. Associated British Foods's 3-Year RORE % for the quarter that ended in Feb. 2024 was 23.41%.

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

LSE:ABF's 3-Year RORE % is ranked better than
67.71% of 1762 companies
in the Consumer Packaged Goods industry
Industry Median: 1.73 vs LSE:ABF: 23.41

Associated British Foods 3-Year RORE % Historical Data

The historical data trend for Associated British Foods'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.

Associated British Foods 3-Year RORE % Chart

Associated British Foods Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.25 -39.92 -35.41 23.52 37.16

Associated British Foods Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 6.46 23.52 25.44 37.16 23.41

Competitive Comparison of Associated British Foods's 3-Year RORE %

For the Packaged Foods subindustry, Associated British Foods'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.


Associated British Foods's 3-Year RORE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's 3-Year RORE % distribution charts can be found below:

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



Associated British Foods 3-Year RORE % Calculation

Associated British Foods's 3-Year RORE % for the quarter that ended in Feb. 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 )
=( 1.546-1.002 )/( 3.501-1.177 )
=0.544/2.324
=23.41 %

* 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 Feb. 2024 and 3-year before.


Associated British Foods  (LSE:ABF) 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.


Associated British Foods 3-Year RORE % Related Terms

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Associated British Foods (LSE:ABF) Business Description

Traded in Other Exchanges
Address
10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like baker's yeast, enzymes, lipids, and cereal specialities. Some 40% of sales are in the U.K., and Primark generates more than half of the firm's operating profit.

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