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Medibank Private (ASX:MPL) 5-Year RORE % : 42.59% (As of Dec. 2023)


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What is Medibank Private 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. Medibank Private's 5-Year RORE % for the quarter that ended in Dec. 2023 was 42.59%.

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

ASX:MPL's 5-Year RORE % is ranked better than
83.64% of 440 companies
in the Insurance industry
Industry Median: 9.34 vs ASX:MPL: 42.59

Medibank Private 5-Year RORE % Historical Data

The historical data trend for Medibank Private'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.

Medibank Private 5-Year RORE % Chart

Medibank Private Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only - -23.90 -2.01 -16.96 15.45

Medibank Private Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -7.35 -16.96 - 15.45 42.59

Competitive Comparison of Medibank Private's 5-Year RORE %

For the Insurance - Specialty subindustry, Medibank Private'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.


Medibank Private's 5-Year RORE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Medibank Private's 5-Year RORE % distribution charts can be found below:

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



Medibank Private 5-Year RORE % Calculation

Medibank Private's 5-Year RORE % for the quarter that ended in Dec. 2023 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 )
=( 0.226-0.157 )/( 0.82-0.658 )
=0.069/0.162
=42.59 %

* 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 Dec. 2023 and 5-year before.


Medibank Private  (ASX:MPL) 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.


Medibank Private 5-Year RORE % Related Terms

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Medibank Private (ASX:MPL) Business Description

Traded in Other Exchanges
Address
720 Bourke Street, Level 6, Docklands, VIC, AUS, 3008
Previously owned by the Australian government, Medibank is the largest health insurer in Australia. Its two brands, Medibank Private and ahm, cover around 5 million people. Medibank and Australia's fourth-largest health fund NIB Holdings are the only listed health insurers. In addition to private health insurance, the firm provides life, pet, and travel insurance, as well as health insurance for overseas students and temporary overseas workers. The Medibank Health division provides healthcare services to businesses, governments, and communities across Australia and New Zealand.

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