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Revolution Medicines (FRA:42Z) 5-Year RORE % : 10.46% (As of Dec. 2024)


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What is Revolution Medicines 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. Revolution Medicines's 5-Year RORE % for the quarter that ended in Dec. 2024 was 10.46%.

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

FRA:42Z's 5-Year RORE % is ranked better than
75.98% of 1149 companies
in the Biotechnology industry
Industry Median: -6.76 vs FRA:42Z: 10.46

Revolution Medicines 5-Year RORE % Historical Data

The historical data trend for Revolution Medicines'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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Revolution Medicines 5-Year RORE % Chart

Revolution Medicines Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
5-Year RORE %
Get a 7-Day Free Trial - - - 18.28 10.46

Revolution Medicines Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 18.28 14.63 12.67 12.17 10.46

Competitive Comparison of Revolution Medicines's 5-Year RORE %

For the Biotechnology subindustry, Revolution Medicines'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.


Revolution Medicines's 5-Year RORE % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Revolution Medicines's 5-Year RORE % distribution charts can be found below:

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


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Revolution Medicines 5-Year RORE % Calculation

Revolution Medicines's 5-Year RORE % for the quarter that ended in Dec. 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 )
=( -3.313--1.862 )/( -13.875-0 )
=-1.451/-13.875
=10.46 %

* 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. 2024 and 5-year before.


Revolution Medicines  (FRA:42Z) 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.


Revolution Medicines 5-Year RORE % Related Terms

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Revolution Medicines Business Description

Traded in Other Exchanges
Address
700 Saginaw Drive, Redwood City, CA, USA, 94063
Revolution Medicines Inc is a clinical-stage precision oncology company focused on developing novel targeted therapies to inhibit elusive, frontier targets within notorious growth and survival pathways, with particular emphasis on the RAS and mTOR signaling pathways. The company's products includes RMC-4630, a SHP2 inhibitor, RAS(ON) portfolio and SOS1 and 4EBP1/mTORC1 programs.

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