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Solution Financial (TSX:SFI) 3-Year RORE % : -133.33% (As of Jan. 2024)


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What is Solution 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. Solution Financial's 3-Year RORE % for the quarter that ended in Jan. 2024 was -133.33%.

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

TSX:SFI's 3-Year RORE % is ranked worse than
93.36% of 1220 companies
in the Vehicles & Parts industry
Industry Median: 9.19 vs TSX:SFI: -133.33

Solution Financial 3-Year RORE % Historical Data

The historical data trend for Solution 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.

Solution Financial 3-Year RORE % Chart

Solution Financial Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -113.64 88.89 23.08 -

Solution Financial Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -50.00 - -183.33 - -133.33

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

For the Auto & Truck Dealerships subindustry, Solution 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.


Solution Financial's 3-Year RORE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solution Financial's 3-Year RORE % distribution charts can be found below:

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



Solution Financial 3-Year RORE % Calculation

Solution Financial's 3-Year RORE % for the quarter that ended in Jan. 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 )
=( 0.004-0.012 )/( 0.018-0.012 )
=-0.008/0.006
=-133.33 %

* 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 Jan. 2024 and 3-year before.


Solution Financial  (TSX:SFI) 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.


Solution Financial 3-Year RORE % Related Terms

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Solution Financial (TSX:SFI) Business Description

Traded in Other Exchanges
Address
Unit 137 - 8680 Cambie Road, Richmond, BC, CAN, V6X 4K1
Solution Financial Inc is engaged in retail sales, leases, and financing for high-end automotive vehicles, ultra-luxury vehicles, boats, and commercial equipment. The firm generates the majority of its revenue through the sales and leases of vehicles.

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