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EDU (New Oriental Education & Technology Group) 5-Year RORE % : -1.06% (As of Aug. 2024)


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What is New Oriental Education & Technology Group 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. New Oriental Education & Technology Group's 5-Year RORE % for the quarter that ended in Aug. 2024 was -1.06%.

The industry rank for New Oriental Education & Technology Group's 5-Year RORE % or its related term are showing as below:

EDU's 5-Year RORE % is ranked worse than
60.29% of 204 companies
in the Education industry
Industry Median: 7.48 vs EDU: -1.06

New Oriental Education & Technology Group 5-Year RORE % Historical Data

The historical data trend for New Oriental Education & Technology Group'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.

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New Oriental Education & Technology Group 5-Year RORE % Chart

New Oriental Education & Technology Group Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.98 2.87 -790.09 -112.21 -96.82

New Oriental Education & Technology Group Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 -56.79 -67.45 -111.65 -96.82 -1.06

Competitive Comparison of New Oriental Education & Technology Group's 5-Year RORE %

For the Education & Training Services subindustry, New Oriental Education & Technology Group'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.


New Oriental Education & Technology Group's 5-Year RORE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, New Oriental Education & Technology Group's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where New Oriental Education & Technology Group's 5-Year RORE % falls into.



New Oriental Education & Technology Group 5-Year RORE % Calculation

New Oriental Education & Technology Group's 5-Year RORE % for the quarter that ended in Aug. 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 )
=( 2.4-2.41 )/( 0.944-0 )
=-0.01/0.944
=-1.06 %

* 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 Aug. 2024 and 5-year before.


New Oriental Education & Technology Group  (NYSE:EDU) 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.


New Oriental Education & Technology Group 5-Year RORE % Related Terms

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New Oriental Education & Technology Group Business Description

Address
No. 6 Hai Dian Zhong Street, Haidian District, Beijing, CHN, 100080
New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental's revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. The company also owns 55% of East Buy, a market leader in livestreaming e-commerce.