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Morgan Stanley (LIM:MS) 5-Year RORE % : 2.97% (As of Sep. 2024)


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What is Morgan Stanley 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. Morgan Stanley's 5-Year RORE % for the quarter that ended in Sep. 2024 was 2.97%.

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

LIM:MS's 5-Year RORE % is ranked worse than
56.66% of 706 companies
in the Capital Markets industry
Industry Median: 9.055 vs LIM:MS: 2.97

Morgan Stanley 5-Year RORE % Historical Data

The historical data trend for Morgan Stanley'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.

Morgan Stanley 5-Year RORE % Chart

Morgan Stanley 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 12.17 15.99 19.74 5.65 -0.09

Morgan Stanley 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 3.85 -0.09 3.08 2.43 2.97

Competitive Comparison of Morgan Stanley's 5-Year RORE %

For the Capital Markets subindustry, Morgan Stanley'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.


Morgan Stanley's 5-Year RORE % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Morgan Stanley's 5-Year RORE % distribution charts can be found below:

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



Morgan Stanley 5-Year RORE % Calculation

Morgan Stanley'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 )
=( 6.57-5.93 )/( 32.8-11.275 )
=0.64/21.525
=2.97 %

* 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.


Morgan Stanley  (LIM:MS) 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.


Morgan Stanley 5-Year RORE % Related Terms

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Morgan Stanley Business Description

Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments with approximately 45% of net revenue from its institutional securities business, 45% from wealth management, and 10% from investment management. About 30% of its total revenue is from outside the Americas. The company had over $5 trillion of client assets as well as around 80,000 employees at the end of 2023.