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Zoom Communications (LTS:0A1O) 5-Year RORE % : 14.02% (As of Oct. 2024)


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What is Zoom Communications 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. Zoom Communications's 5-Year RORE % for the quarter that ended in Oct. 2024 was 14.02%.

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

LTS:0A1O's 5-Year RORE % is ranked better than
61.6% of 2034 companies
in the Software industry
Industry Median: 5.68 vs LTS:0A1O: 14.02

Zoom Communications 5-Year RORE % Historical Data

The historical data trend for Zoom Communications'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.

Zoom Communications 5-Year RORE % Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
5-Year RORE %
Get a 7-Day Free Trial - - - 4.58 21.34

Zoom Communications Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 8.49 21.34 25.43 19.05 14.02

Competitive Comparison of Zoom Communications's 5-Year RORE %

For the Software - Application subindustry, Zoom Communications'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.


Zoom Communications's 5-Year RORE % Distribution in the Software Industry

For the Software industry and Technology sector, Zoom Communications's 5-Year RORE % distribution charts can be found below:

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



Zoom Communications 5-Year RORE % Calculation

Zoom Communications's 5-Year RORE % for the quarter that ended in Oct. 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 )
=( 3-1.43 )/( 11.2-0 )
=1.57/11.2
=14.02 %

* 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 Oct. 2024 and 5-year before.


Zoom Communications  (LTS:0A1O) 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.


Zoom Communications 5-Year RORE % Related Terms

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Zoom Communications Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

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