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Ambev (ABEV) 5-Year RORE % : 24.20% (As of Sep. 2024)


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What is Ambev 5-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. Ambev's 5-Year RORE % for the quarter that ended in Sep. 2024 was 24.20%.

The industry rank for Ambev's 5-Year RORE % or its related term are showing as below:

ABEV's 5-Year RORE % is ranked better than
62.9% of 186 companies
in the Beverages - Alcoholic industry
Industry Median: 12.96 vs ABEV: 24.20

Ambev 5-Year RORE % Historical Data

The historical data trend for Ambev's 5-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.

Ambev 5-Year RORE % Chart

Ambev Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.03 -31.97 2.29 -2.16 -0.44

Ambev Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-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 4.78 -0.44 13.48 23.96 24.20

Competitive Comparison of Ambev's 5-Year RORE %

For the Beverages - Brewers subindustry, Ambev's 5-Year RORE %, along with its competitors' market caps and 5-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.


Ambev's 5-Year RORE % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Ambev's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Ambev's 5-Year RORE % falls into.



Ambev 5-Year RORE % Calculation

Ambev's 5-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 0.172-0.119 )/( 0.832-0.613 )
=0.053/0.219
=24.20 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 5-year before.


Ambev  (NYSE:ABEV) 5-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, 5-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.


Ambev 5-Year RORE % Related Terms

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Ambev Business Description

Address
Rua Doctor Renato Paes de Barros, 1017, 3rd Floor, Sao Paulo, SP, BRA, 04530-001
Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2023.

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