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Tokai Soft Co (TSE:4430) 5-Year RORE % : 18.13% (As of Feb. 2024)


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What is Tokai Soft Co 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. Tokai Soft Co's 5-Year RORE % for the quarter that ended in Feb. 2024 was 18.13%.

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

TSE:4430's 5-Year RORE % is ranked better than
67.99% of 1943 companies
in the Software industry
Industry Median: 5.85 vs TSE:4430: 18.13

Tokai Soft Co 5-Year RORE % Historical Data

The historical data trend for Tokai Soft Co'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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Tokai Soft Co 5-Year RORE % Chart

Tokai Soft Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23
5-Year RORE %
Get a 7-Day Free Trial - - - - 11.25

Tokai Soft Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 13.55 11.25 8.23 18.78 18.13

Competitive Comparison of Tokai Soft Co's 5-Year RORE %

For the Software - Infrastructure subindustry, Tokai Soft Co'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.


Tokai Soft Co's 5-Year RORE % Distribution in the Software Industry

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

* The bar in red indicates where Tokai Soft Co's 5-Year RORE % falls into.



Tokai Soft Co 5-Year RORE % Calculation

Tokai Soft Co's 5-Year RORE % for the quarter that ended in Feb. 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 )
=( 148.038-70.867 )/( 514.059-88.5 )
=77.171/425.559
=18.13 %

* 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 Feb. 2024 and 5-year before.


Tokai Soft Co  (TSE:4430) 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.


Tokai Soft Co 5-Year RORE % Related Terms

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Tokai Soft Co (TSE:4430) Business Description

Traded in Other Exchanges
N/A
Address
2-15-1 Shinmichi Nishi-ku, Nagoya, JPN, 451-0043
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.

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