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LG Energy Solution (XKRX:373220) 3-Year RORE % : 10.54% (As of Dec. 2023)


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What is LG Energy Solution 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. LG Energy Solution's 3-Year RORE % for the quarter that ended in Dec. 2023 was 10.54%.

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

XKRX:373220's 3-Year RORE % is ranked better than
54.8% of 2821 companies
in the Industrial Products industry
Industry Median: 6.12 vs XKRX:373220: 10.54

LG Energy Solution 3-Year RORE % Historical Data

The historical data trend for LG Energy Solution'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.

LG Energy Solution 3-Year RORE % Chart

LG Energy Solution Annual Data
Trend Dec20 Dec21 Dec22 Dec23
3-Year RORE %
- - - 10.54

LG Energy Solution Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 10.54

Competitive Comparison of LG Energy Solution's 3-Year RORE %

For the Specialty Industrial Machinery subindustry, LG Energy Solution'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.


LG Energy Solution's 3-Year RORE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, LG Energy Solution's 3-Year RORE % distribution charts can be found below:

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



LG Energy Solution 3-Year RORE % Calculation

LG Energy Solution's 3-Year RORE % for the quarter that ended in Dec. 2023 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 )
=( 5287-3963 )/( 12565-0 )
=1324/12565
=10.54 %

* 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.


LG Energy Solution  (XKRX:373220) 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.


LG Energy Solution 3-Year RORE % Related Terms

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LG Energy Solution (XKRX:373220) Business Description

Traded in Other Exchanges
N/A
Address
Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR
LG Energy Solution, or LGES, is the third-largest battery maker for electric vehicles, or EVs, with about 14% global share in the first half of 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for close to 60% of total revenue in 2022. Besides EV batteries, LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai Motors and Stellantis.

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